Congress welcomes the move
AMN
The Government of India reviewed the existing Foreign Direct Investment policy in light of the current COVID-19 pandemic. The new provisions of the policy aim towards curbing opportunistic takeovers and acquisitions of Indian companies.
The new norms state that an entity of a country sharing land border with India can invest only under the Government route. The policy is also applicable for entities whose owner is a citizen or is situated in any such border sharing country.
For Pakistan based owners, citizens or entities investment could be made only under the Government route in sectors other than defence, space, atomic energy and other notified sectors prohibited for foreign investment.
The new policy clarifies that in case of any change or transfer in ownership of an Indian entity arising because of FDIs from such countries would also require government approval.
Congress has welcomed the amendment in FDI Policy by the government in view of COVID-19 pandemic. The party said, the decision will plug creeping acquisition of any Indian entity.
Senior Congress leader Rahul Gandhi thanked the Central Government for amending the FDI norms and making government’s approval mandatory in some specific cases.
Party Spokesman Randeep Singh Surjewala said that the party is glad that the government has positively responded to former Congress President’s suggestion of protecting Indian Corporates from hostile takeovers.