Prime Minister Narendra Modi-led Indian government has not made any amendments to ‘Press Note 3’, a foreign direct investment (FDI) policy introduced in 2020 which impacts investors from nations sharing a land border with India, including China, Pakistan, and Bangladesh.
India FDI policy: In a major decision that would significantly impact investors from nations who share a land border with India, including China, Pakistan, and Bangladesh, the Prime Minister Narendra Modi-led Indian government has not made any changes or amendments to ‘Press Note 3’, a foreign direct investment (FDI) policy introduced in 2020.
Citing sources, a PTI report said no amendments have been made to the FDI policy for countries sharing land border with India. “After issuance of this press note, no amendment has been undertaken in the FDI policy relating to investments from countries sharing land border with India,” the report quoted a source as saying.
In 2020, the Narendra Modi government had issued ‘Press Note 3’, a new FDI policy under which investors from these land bordering countries now require mandatory government approval to invest in any sector in India. As per sources, Press Note 3 is equally applicable to all the land bordering countries of India which are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
All FDI proposals from these nations undergo the similar process of scrutiny and examination as per standard operating procedure for the processing of investment proposals from these nations, they said, according to the PTI report,
Presently, an inter-ministerial committee headed by the Home Secretary has been tasked with considering applications under Press Note 3.
As per certain reports, the government has streamlined the approval process for FDI applications from China, even as the bulk of FDI coming into India largely falls under the automatic approval route.
(With inputs from agencies)
