After banning Chinese apps, why does India want to put a ban on Chinese participation in highway projects? Will it impact India’s infrastructure push?

Nitin Gadkari has announced that going ahead Chinese companies will not be allowed to participate in highway projects, including joint ventures. This is in the aftermath of the border skirmish between India and China. Gadkari emphasized that Chinese investors will also be discouraged from investing in Micro, Small and Medium Enterprises (MSMEs).

It may be recollected that exactly two days back, the government had banned 59 apps with Chinese links citing threats to national security. In continuation of that policy, India will not approve joint ventures with Chinese partners for road construction. Gadkari hinted that soon Chinese firms will be banned and norms will be relaxed for Indian bidders.

Gadkari emphasized that the decision will be implemented in current and future tenders and underlined that even with respect to existing tenders rebidding would be done if there were Chinese joint ventures. For domestic bidders the government hinted that they would be relaxing technical and financial norms so Indian companies can qualify to work.

The crux of the new norms will be that even if India has to go for foreign joint ventures in the areas of technology, consultancy or design, it will not permit Chinese companies. The decision to encourage foreign investments will be clearly to the exclusion of Chinese companies. Even imports from China will be discouraged in a bid for self-reliance.