NEW DELHI: The government is yet to approve 54 foreign direct investment (FDI) proposals received during last year and current year from neighbouring countries China and Hong Kong, finance minister Nirmala Sitharaman said on Monday in a written reply to Lok Sabha.
She said the government is not considering relaxing the norms in relation to proposals from the countries that share land with India. “54 FDI proposals received during the past year and current year with investor/beneficial owner from China/Hong Kong are pending for decision with the government as of 21.03.2023,” she said.
In 2020, when the political tensions with China peaked and Covid pandemic too was on the rise, India amended the FDI policy to prevent takeover of domestic firms by investors based in neighbouring countries. The amendment was done via Foreign Exchange Management (Non-Debt Instruments) Amendment Rules, 2020.
“Government amended the FDI policy, as per which an entity of a country, which shares border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country can invest only under the government route,” she added. Any transfer of ownership of existing or future FDI in entity in India resulting in the beneficial ownership falling within the aforesaid jurisdictions will also require government nod, she further stated.