New Delhi: Amid the coronavirus pandemic and the possible economic crisis arising out of it, India has reviewed its foreign direct investment policy in an attempt to curb “opportunistic takeovers/acquisitions of Indian companies due to COVID-19. Also Read - Smriti Irani Tests COVID Positive, Urges All Who Came in Contact With Her to Get Tested
According to the revision, a non-resident entity can invest in India, subject to FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route. Also Read - eSanjeevani: Govt's Patient to Doctor Telemedicine Service Crosses 1 Lakh Consultation in 15 Days. Know How It Works
Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment, it said. Also Read - IPL 2020 News: Sourav Ganguly Calls IPL 'Best Tournament in The World', Happy With Smashing Success in Terms of Ratings, Viewership
The earlier FDI policy was limited to allowing only Bangladesh and Pakistan via the government route in all sectors. The revised rule has now brought companies from China under the government route filter.
According to reports, this policy is applicable only to large shareholdings of 10 per cent and above. Recently, the People’s Bank of China acquired 1.01 per cent stake of HDFC.