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India's bilateral investment pacts restrictive: Arvind Panagariya

Whereas, Chinese investors made direct investment overseas in 3,434 enterprises of 150 countries and regions worth $61 bn

Press Trust of India  |  New Delhi 

Arvind Panagariya, head of the government's main economic advisory body, gestures during an interview in New Delhi. Photo: Reuters
Arvind Panagariya

India's bilateral pacts happen to be "restrictive" while is emerging as a major force when it comes to overseas investments, Vice-Chairman said on Tuesday. "is now emerging as a provider of outward It is looking out to set rules for outward Our own bilateral treaty happens to be rather restrictive," Panagariya said addressing the International G20 Conference organised by ICRIER in New Delhi. According to Chinese government data, in January-April 2016, the Chinese investors made direct overseas in 3,434 enterprises of 150 countries and regions.

The direct overseas amounted to RMB 391.45 billion (equivalent to $60.08 billion, up 71.8% year on year). Last month, the US Deputy Assistant to the US President and Deputy National Security Advisor for International Economics Adewale (Wally) Adeyemo had blamed India for not being ambitious enough to conclude Bilateral Treaty (BIT). "To be frank, we are far apart on number of issues with regard to trade and with India. We feel our colleagues in India have not been as ambitious (on concluding BIT) as we want them to be but we remain open," Adeyemo had said here at a session on India-US Economic Relations. In December last year, the Cabinet had approved the revised model text for the Bilateral Treaty (BIT) with a view to enhancing protection of foreign investors in India as well as Indian investments abroad, but taxation matters will remain out of its ambit. Elaborating more about the issues to be discussed in the forthcoming G20 meet scheduled next month in China, Panagariya said that there are five sessions expected to be held at leaders level. The first session will be on growth agenda and Chinese presidency has added as a new dimension to it, he noted. Besides, he said, the other issues that would figure in the meet are climate change and climate financing, refugee crisis and terrorism financing. Panagariya said the issues pertaining to the jobs market as well as those related to agriculture development will also be discussed at the meet.

First Published: Tue, August 09 2016. 12:48 IST