Plan made to amend clause to target companies from China  |  Photo Credit: BCCL
New Delhi: In an attempt to harden its resolve to retaliate against China for killing 20 Indian soldiers last month in Ladakh, the Narendra Modi-led government is actively considering a plan to impose trade and procurement restrictions on firms from countries ‘illegally occupying Indian territory’.
High-level talks are underway to assess the proposal for trade and procurement curbs on companies from select countries and deliberate its “implementation and business implications”, according to a report in ET. However, a final decision is yet to be taken.
It is worth noting that the proposed move would directly hit Chinese companies as Beijing ‘illegally occupies’ 38,000 sq km of Indian territory in Ladakh. Plus, Pakistan, which has occupied a part of Kashmir (Pakistan-Occupied Kashmir), has ceded over 5,000 sq km in the Shaksgam Valley to China.
If the plan gets the approval, the checks may be brought through amendments in the Public Procurement (Preference to ‘Make in India’) Order of 2017, sources aware of the matter told the financial daily. Also, some changes may have to be made in the General Financial Rules.
Top officials highlighted that the proposal is being examined meticulously, because of its ‘high sensitive’ nature and possible consequences on diplomatic relations with China, the publication mentioned.
