Indian FDI Policy Tweaked To Make it More Attractive than China

Upset over Chinese companies shopping in the Indian stock markets, the government dropped the foreign direct investments (FDI) coming from its neighbours from the automatic approval, amending the rules that they would require prior government approval.

Well, considering the present-day scenario the policymakers here have realised that a lot of changes will remain long term after the COVID-19 crisis. In order to remain competitive the decision to amend the FDI policy is getting considered as timely.

So far the restriction applied to the residents of Pakistan and Bangladesh, but it has been extended to China without naming it in the order issued by the Ministry of Commerce and Industry on Saturday.

It says: "An entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route."