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India is working to create an indigenous Virtual Asset Lab for detection of unregistered, high-risk offshore virtual asset service providers (oVASPs) by using analytics and web surveillance tools. A Financial Action Task Force (FATF) report, titled 'Understanding and mitigating the risks of offshore virtual asset service providers', gave case studies of India and other countries on how oVASPS are being used for money laundering and supervision being done by the nations. According to the FATF report, some jurisdictions have established structured cooperation with internet service providers, app-store operators and online platforms to disrupt unauthorised oVASPs activity. Giving a case study from India, the FATF report said that FIU-India, along with the Home Ministry, has directed intermediaries (social media platforms, web hosts, internet service providers) to take down website content. "So far, 85 URLs pertaining to unregistered non-compliant oVASPs have been taken down," it ...
Overseas companies having Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors; however, the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India, a senior official said on Wednesday. Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector. The Union Cabinet on March 10 made changes in the press note 3 of 2020 in this regard. Under the press note, investors from countries sharing land borders with India had to seek mandatory approval to invest in any sector. "All the restrictions for investors from land bordering countries (LBCs) are still applicable. There is no relaxation so far as entities or investors in LBCs are concerned. This relaxation is only for entities in non-LBCs and having beneficial owners from LBCs below 10 per cent and ...
The government on Tuesday eased norms for foreign direct investment from all countries, including China, that share land borders with India, sources said. They said press note 3 of 2020 has been amended in this regard. The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. Under this press note, foreign companies having shareholders from these countries required mandatory government approval for investments in India in any sector. Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. China stands at the 23rd position with only 0.32 per cent share (USD 2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025. Ties between the two countries nosedived significantly following the fierce clash in Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades. Following these tensions, India banne
The Economic Survey on Thursday called for a multi-pronged strategy to strengthen the country's investment climate by addressing both structural and cyclical factors, noting that the key challenge going forward is sustaining FDI inflows amid heightened global volatility. It said that the window for action is still open, but it will not remain so indefinitely. There is a need to move decisively to transform the FDI challenge into the next chapter of the economic growth story, it said. Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infrastructure needs. "Proactive reforms are essential to attract more foreign investment," it said adding this approach involves developing a targeted strategy that identifies a specific set of GVC (global value chain) anchors and establishes a state apparatus that collaborates directly with them as partners. The direct engagement will help resolve cross-agency issues and provide