Amid the covid 19 pandemic, the Narendra Modi led government on Saturday has tweaked its foreign direct investment (FDI) policy 2017. This is to keep a check on any opportunistic investment.
As per the new revised policy rule, any company of a nation that shares land border with India or where the beneficiary of an Indian investment is situated in or is a citizen of any such nation, then the investment is allowed only through the government route.
"Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment," the government said.
Also, if the transfer of ownership of any existing or future FDI in a company in India is through direct or indirect route which results in the ownership falling within the limit or purview subsequent change will also be need approval from the government.
The amendment in FDI policy will take effect from the date of FEMA notification.