July 28, 2020

About 200 investment proposals from China are awaiting security clearance from the Ministry of Home Affairs (MHA) after the new FDI rules were notified in April 2020.


  • The Department for Promotion of Industry and Internal Trade (DPIIT) notified the new FDI policy in April 2020, making prior government approval mandatory for foreign direct investments (FDI) from countries which share a land border with India.

  • India shares land borders with Pakistan, Afghanistan, China, Nepal, Bhutan, Bangladesh and Myanmar.

  • Investors from countries that are not covered by revised FDI new policy only have to inform the Reserve Bank of India (RBI) after the completion of a transaction rather than seek prior clearance from the administrative ministry.

  • The revised FDI policy is aimed at “curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic.”

Source : The Hindu