DPIIT, Finance Ministry locked horns before tweak in FDI guidelines

Since the FDI notification was meant to restrict, than expand, the ambit of foreign investment, it was initially opposed by the finance ministry

The government’s move on Friday, mandating government approvals regarding foreign direct investments (FDIs) “to curb opportunistic takeovers /acquisitions of Indian companies”, went through the Cabinet unanimously, but only after a fair amount of backroom work.  

There were differences between the department for promotion of industry and internal trade (DPIIT), which had moved the Cabinet note, and the finance ministry. Because of the differences, senior ministers, including the ministry of external affairs, had taken part in deliberations before the Cabinet gave its approval.

Since the FDI notification was meant to restrict, than expand, the ambit of foreign investment, it was initially opposed by