India to cut off funding to US-based firms
India will cut off all foreign investment in US-listed firms that support the country’s anti-corruption campaign, as well as those that have engaged in corruption, Prime Minister Narendra Modi has said.
The government will also seek to block funding for companies that support or promote the corruption of the judiciary or other government officials, and those that engage in money laundering or illegal activities, the prime minister said in a speech on Monday.
The US has been India’s biggest donor, giving it about $50 billion since 2001.
India also relies heavily on the United States for a quarter of its trade and the US provides India with a major export market.
Mr Modi said the measures will be announced in the coming days and the measures, including the removal of foreign funds, would not affect Indian companies or individuals.
“We will not give money to any business that supports the anti- corruption campaign or promotes corruption,” he said, adding that the government will be in contact with US firms in this regard.
The prime minister has also said the government would ban the sale of foreign-made goods to foreign firms.
He said that the decision would not include any restrictions on goods or services coming into the country.
“The government of India will immediately suspend all foreign aid for any foreign company or individual that sells its goods or technology to a company or entity that supports or promotes the corruption or other illegal activities,” he told the Economic Times in an interview.
Mr Trump, the Republican candidate who has pledged to bring back jobs from India, said he had been told the Indian government was working on measures that could prevent companies from donating to American businesses.
“They have been talking to me, they have been working on a plan to block foreign investment for the past year,” Mr Trump said.
He said he expected a “massive backlash” against the move from the American people, saying that he was “deeply disappointed” by the Indian decision.