India has declined a $1 billion investment proposition from Chinese automaker BYD Co, which aimed to establish an electric car and battery factory in the country in partnership with Megha Engineering and Infrastructure Ltd, based in Hyderabad. The rejection came after concerns were raised about potential security risks associated with Chinese investments in India, as reported by the Economic Times.
Earlier this month, BYD had submitted the investment proposal, intending to tap into India's rapidly expanding electric vehicle market. The plan involved a collaborative effort with a local company to manufacture electric cars and batteries, aligning with India's ambitions for eco-friendly transportation solutions.
To reach a decision, India's Department of Commerce and the Department for Promotion of Industry and Internal Trade (DPIIT) sought opinions from various other government departments. Ultimately, concerns over national security emerged during the discussions, leading to the rejection of BYD's proposal.
Reuters had previously reported on BYD's investment plans, but the authenticity of The Economic Times' report remains unverified by the news agency. This latest development underscores the ongoing tensions between India and China, which have implications for business endeavors and investments from Chinese firms in India. Following the setback of the rejected proposal, BYD will likely need to reevaluate its strategies to penetrate one of the world's fastest-growing electric vehicle markets.
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