Niti Aayog recommends allowing Chinese investment up to 24% in Indian companies, dumping the current requirement for national security vetting for investment from countries that share a land border with India — a clear euphemism for China, since Pakistan, Bhutan, Nepal, Myanmar and Bangladesh are not exactly in a race to top global charts for outward investment. Perhaps, the Niti Aayog would next suggest educational reform that awards 25% marks if a student tots up 2 and 2 and gets 1. Next in line could be do-it-yourself test kits to assess if a woman is 25% pregnant, 50% or cent-percent pregnant.Let us appreciate the rationale for restricting Chinese investment. Any economic activity generates value, and to the extent a part of the value would accrue to labour, even in a factory owned 100% by the Chinese, local Indian workers would get jobs and incomes. Ancillary industries that supply food to the Chinese-owned factory’s workforce, ferry workers to and fro between home and workplace, supply inputs and transport finished goods, would multiply the jobs and incomes created by the Chinese factory. What is the rationale for restricting any investment at all?
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