China BYD rejection

The Indian government has rejected a USD 1 billion investment proposal from Chinese electric car maker BYD and its partner, Megha Engineering and Infrastructures Ltd (MEIL), to establish an electric vehicle manufacturing plant in Telangana. The proposal was subject to scrutiny and approval from various ministries, but it was ultimately decided not to approve it. According to Foreign Direct Investment (FDI) rules, investments from countries sharing a land border with India, including China, require government permission. As a result, the proposal faced hurdles and was not granted approval. India has received USD 2.5 billion in FDI equity from China between April 2000 and March 2023.