NEW DELHI: Former NITI Aayog Vice Chairman Rajiv Kumar on Thursday pitched for the removal of restrictions on investments from China into India, saying it will boost domestic manufacturing and generate employment.Kumar, in an interview with PTI Videos, further said China has become a significant foreign investor in other countries, and India needs that investment.”So, I think the time has come to seriously consider permitting Chinese investments into India,” he said.In the last few months, India and China have initiated a number of measures to repair the bilateral ties that had severely nosedived following the deadly clashes between the two militaries in June 2020.”And let me be forthright, I think it is time to remove Press Note 3 that regulates investment from neighbouring countries. The only neighbouring country which matters is, as you know, is China,” Kumar said.Under Press Note 3 of 2020, the government has made its prior approval mandatory for foreign investments from countries that share land borders with India.These countries are China, Bangladesh, Pakistan, Bhutan, Nepal and Afghanistan.He further explained that investments from China will help produce things locally in India.”That is always better, because imports from China do not create employment in India. Imports do not create backwards linkages. So if you allow Chinese manufacturing investments, they will manufacture here, and they will produce, and maybe they can also export from India,” Kumar noted.
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