Chinese FDI Chinese FDIs in India only through govt route: Centre
New Delhi/IBNS: The government has amended the FDI policy according to which an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route, Ministry of Commerce & Industry has said.
This has been done to curb opportunistic takeovers/acquisitions of Indian companies due to the COVID-19 pandemic.
"Further, in the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the said policy amendment, such subsequent change in beneficial ownership will also require government approval," said the ministry.
In the last three years, a total of $ 453,431,009.98 Foreign Direct Investment (FDI) Equity inflow from China was reported.
In Apr-Mar 2018-19 FDI equity inflow from China was $ 229,005,722.98, in 2019-20 it was $ 163,776,450.82 and reduced to $ 60,648,836.18.
"As per the Standard Operating Procedure (SOP) for processing FDI Proposals dated 9.11.2020, applications arising out of Press Note 3 (2020) dated 17.04.2020 read with Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2020 dated 22.04.2020, require security clearance from Ministry of Home Affairs," Minister of State in the Ministry of Commerce and Industry, SomParkash, informed Rajya Sabha in a written reply.
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