India revisited rules of FDI for bordering countries

Photo: Hindustan Times YouTube channel

India has fixed its Foreign Direct Investment (FDI) strategy, making compulsory its earlier endorsement for remote speculations from bordering nations to check "critical takeover" of Indian firms following the Covid-19 pandemic.

Additionally, an exchange of proprietorship in a FDI bargain that benefits any nation which imparts the borders to India will require government endorsement, the Department of Promotion of Industry and Internal Trade (DPIIT) under Indian Commerce Ministry said in an announcement on Saturday evening.

The nations sharing the land fringes with India are China, Bangladesh, Pakistan, Afghanistan, Bhutan, Nepal and Myanmar.

The choice has been taken to check "crafty takeovers or acquisitions" of household firms because of the current Covid-19 pandemic however the DPIIT didn't name any nation, reports our New Delhi journalist.

Prior to Saturday's change, the Indian government's earlier authorization was compulsory just for speculations originating from Bangladesh and Pakistan.

The changed principle has now brought organizations from all nations under the administration endorsement course.

The DPIIT choice came after the People's Bank of China expanded its stake to 1.01 percent in private Indian home loan moneylender Housing Development Finance Corporation.