Restriction On Investing In India

Restriction On Investing In India

Restriction On Investing In India

At the recent East Asia summit in Thailand, China and India announced that they will pursue negotiations for a free-trade agreement. Just a few weeks before, they signed an agreement to resist binding cuts and caps to their greenhouse gas emissions. The latest flowering of an ancient relationship which goes back almost 3,000 years, augurs well for the entire region. But there are issues which need to be sorted out with tact, patience and diplomacy.

Sino-Indian Border Dispute

Low level hostilities may surface over the disputed border regions. China claims about 90,000 sq km of the region as part of its territory. The two countries fought a short border war in 1962. The reports of Chinese incursions along the border have been shrugged off by both governments. Also last month New Delhi protested against a Chinese embassy policy of issuing different visas to residents of disputed Kashmir.

Tibet and Dalai Lama

Issues like Tibet, whose spiritual leader, the Nobel Peace Prize-winning monk, the Dalai Lama, is reviled by Beijing and is considered as a dangerous scheming separatist. It has protested against his week-long visit to the Indian state of Arunachal Pradesh which borders China. But India, which has been home to the exiled Dalai Lama since he fled a failed Tibetan uprising against Chinese rule in 1959, has cleared the visit.