Updated April 19th, 2020 at 11:49 IST
Congress jumps in to take credit for Modi govt blocking FDI from China via automatic route
Reacting to the Centre's move, Congress party claimed that its former president Rahul Gandhi had first warned the government against the misuse of FDI in crisis
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A day after the Central government made its prior approval mandatory for foreign investments from countries that share a land border with India, the Congress party claimed that it was 'glad' the government had finally woken up and had acted. Reacting to the Centre's move, Congress party claimed that its former president Rahul Gandhi had first warned the government against the misuse of FDI during a crisis. Further, the Congress party alleged that the threat of Chinese investments through FDI had been looming around for quite some time and said that it was glad the government had finally acted.
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Congress takes credit for China checkmate
Govt amends FDI rules requiring approval 4 entities from country that share land border@RahulGandhi first warned govt of taking steps to curtail misuse of FDI during crisis
— Karnataka Congress (@INCKarnataka)
Alarm bells regarding Chinese investments have been ringing for sometime
Glad that GOVT woke up & acted
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Rahul Gandhi 'thanks' the govt
I thank the Govt. for taking note of my warning and amending the FDI norms to make it mandatory for Govt. approval in some specific cases. https://t.co/ztehExZXNc
— Rahul Gandhi (@RahulGandhi)
The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The Govt must not allow foreign interests to take control of any Indian corporate at this time of national crisis.
— Rahul Gandhi (@RahulGandhi)
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Policy amended for curbing "opportunistic takeovers"
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.
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Published April 19th, 2020 at 11:49 IST