Rashtriya Swayamsewak Sangh affiliate Swadeshi Jagran Manch (SJM) has asked Indian industries to shun Chinese investment as it may not find favour with the Modi government’s policy regarding China amid the border stand-off.
SJM national co-convener Ashwani Mahajan said India’s trade with China will go down further as the government looks to plan more restrictions on Chinese imports and encourage domestic production.
While SJM has always been against Chinese imports and investment in the country, the recent caution issued by Mahajan was prompted after the Insurance Regulatory Development Authority of India (IRDAI) rejected issuing licence to Paytm for buying out an insurance company. This was done as Paytm had Chinese investment, he said.
“It is writing on the wall. Chinese investment is harmful for the country and also for them. If Paytm has been denied a licence to venture into the insurance sector then one can foresee the future of companies having Chinese investment,” said Mahajan.
Earlier, the commerce and industry minister Piyush Goyal maintained that trade deficit with China has come down from $48 billion in 2014-15 to $44 in 2021. He also said there has not been any extraordinary increase in trade with China.
The caution assumes significance as the SJM has been batting for promotion of the Indian industry and Swadeshi for making the country self-reliant and also giving suggestions to various government agencies in formulating policies.
Mahajan said he believes Paytm case will be an example for Indian startups that they should rely on investment from Indian companies.
“Through IPOs, money can be raised. India’s growth story should be written on by Indian funds. How can a country grow on foreign funds? I would urge start-ups to not go for Chinese investments,” said Mahajan.
Earlier too, the SJM had called for boycott of Chinese products and companies. In 2017, it had written to PM Modi against awarding government contracts to two Chinese firms.
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