The Central government on Saturday made its prior approval mandatory for foreign investments from countries that share a land border with India to curb "opportunistic takeovers" of domestic firms following the COVID-19 pandemic, a move which will restrict FDI from China. Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
According to a press note issued by the Department for promotion of Industry and Internal Trade (DPIIT), "An entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the government route."
It said that the government has amended the FDI (foreign direct investment) policy to curb "opportunistic takeovers/acquisitions" of Indian companies on account of COVID-19 pandemic.
With 957 new cases of COVID-19 in the last 24 hours and 36 deaths, India's total count of Coronavirus cases has surged to 14,792, said the Union Ministry of Health and Family Welfare on Saturday. The total cases are inclusive of 2,014 cured and discharged patients, one migrated and 488 deaths. At present, there are 12,289 active COVID-19 cases in the country.
(With inputs from Agencies)