FDI from neighbouring countries

News:The Government of India has revised its existing Foreign Direct Investment policy in light of the current COVID-19 pandemic. 


  • New FDI Policy: It has made prior government approval mandatory for foreign direct investments(FDI) from countries which share a land border with India or where the beneficial owner of an investment is situated in such country.
  • Earlier FDI Policy:The prior government approval policy was previously applied to only the investments from Pakistan and Bangladesh.
  • Implication: It will curb opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic.