On 17 April 2020, the Indian Government announced a significant change to its foreign direct investment policy (FDI Policy) pursuant to Press Note No. 2 (2020 Series) (Press Note). According to the Press Note, all investments by entities incorporated in 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', will now require prior approval of the Indian Government. The countries which share a land border with India are Afghanistan, Bangladesh, Bhutan, China, Myanmar, Nepal and Pakistan.
Prior to the introduction of the Press Note, only foreign direct investment (FDI) from entities which were either based out of Pakistan or Bangladesh require prior government approval.
Originally published 23 December 2020
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