Clarity for FDI

Govt must follow up on its restrictions on investment from China

The government some weeks ago moved to increase scrutiny of investment in India from countries with which it shares a land border. This action was introduced through a note from the Department for Promotion of Industry and Internal Trade, which revised the foreign direct investment policy to curb opportunistic takeovers of Indian companies. However, there are major issues that have emerged of late, thanks to this note, and they need to be clarified as soon as possible. If the government does not do so, then regulators such as the Reserve Bank of India or the Securities and Exchange Board of