With Eye On China, India Revises FDI Policy To Shield Firms Amid Pandemic

[DavidsSling]

Coronavirus: The revised FDI rule seeks to curb "opportunistic takeovers or acquisitions of Indian companies due to the COVID-19 pandemic", the ministry said

All IndiaReported by Sunil Prabhu, Edited by Debanish AchomUpdated: April 18, 2020 04:16 pm IST

Coronavirus: India said the new FDI policy seeks to protect domestic firms from foreign designs

New Delhi:

Companies in any country that shares a border with India will have to approach the government for investing in India and not go via the automatic route, the Commerce and Industry Ministry said in a press note spelling out its new foreign direct investment or FDI policy for neighbouring states.

FDI in India is allowed under two modes - either through the automatic route, for which companies don't need government approval, or through the government route, for which companies need a go-ahead from the centre.

The revised FDI rule seeks to curb "opportunistic takeovers or acquisitions of Indian companies due to the COVID-19 pandemic", the ministry said.

The government decided to revise the FDI rule to ensure no neighbouring country, especially China, takes undue advantage amid the COVID-19 pandemic, sources in the ministry said.

"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," the ministry said in the statement.

A transfer of ownership in an FDI deal that benefits any country that shares a border with India will also need government approval, the ministry said.

The earlier FDI policy was limited to allowing only Bangladesh and Pakistan via the government route in all sectors. The revised rule has now brought companies from China under the government route filter.

The revised rule is not applicable to the recent 1.01 per cent stake sale by mortgage lender HDFC to People's Bank of China as the deal was less than the strategic 10 per cent, the sources said. The revised FDI policy is applicable in large shareholdings of 10 per cent and above, they said.

There are 17 sectors including defence, telecom and pharmaceuticals that need government approval if any company from abroad wants to invest beyond a certain percentage.

Proposals involving FDI exceeding Rs 50 billion are placed before the Cabinet Committee on Economic Affairs.

https://www.ndtv.com/india-news/cor...-from-neighbours-2214082?pfrom=home-topscroll

 

[Globenim]

Oh no, what are we gonna do without "stealing" Indias rocket and nuclear science.

 

[Beidou2020]

Indian tech?

 

[anyrandom]

Well done Indians, well done!

The high tech industries of India are the envy of the world...playing critical role in the global TechFedual Hierachy!

By protecting these Indian chipmakers and critical software houses India can ensure the Global TechnoDomminace after the pandemic is over.

Very Strategic move!

The Chinese will now never be able to get their hands on the Critical Next Generation Indian Technologies!

Oh no, what are we gonna do without "stealing" Indias rocket and nuclear science.

Trolling should show atleast a bit of intelligence otherwise its a poor reflection of the troller's cognitive abilities.
When western companies like Apple invest in China, it is not to *steal* the super-duper techonological ability of China which can't even make face masks wihout a hole in them. It is to use its labor/natural resources to fund the companies expansion.

Their are suspicions that Chinese companies motivated by CPC will use this economic downturn to invest in strategic industries of India(like banking) with a long eye for future influence. This move is necessary. Almost every nation China invests in, it aims for complete takeover. Case in point, Pakistan, which is a Chinese poodle and heavily relies on China(CPEC) to prevent itself from going bankrupt.