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Amendment to FDI Policy
April 21 , 2020
1736 days
960
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- The Government of India amended the Foreign Direct Investment (FDI) policy, 2017.
- The new amendment requires certain investment to come only through the government approval route alone, and not under the direct route of investment.
- Under the current rule, any non-resident entity is allowed to make investments in India only through Government route.
- This will be applicable to all neighboring countries that share a land border with India.
- Also, while transferring the ownership, the beneficiary is required to obtain the approval of Indian Government.
- The investments through Government route by Pakistan investors can be made only in sectors such as space, defense, and atomic energy.
- This step primarily intends to stem any attempts by Chinese firms to take control of Indian firms.
- Earlier Housing Development Finance Corporation Ltd (HDFC) said that the Chinese central bank, the People’s Bank of China (PBOC) had raised its stake in the HDFC from 0.8% to 1.01% through open market purchases.
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