Indian government has made tougher rule on FDI policy investments on sharing land border countries like Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan and Afghanistan needed prior government approval, irrespective of the FDI ( foreign direct investment) cap applicable to the sector.
The department for promotion of Industry and Internal Trade (DPIIT) making the change said in its April 18 press note that this was aimed at “curbing opportunistic takeovers / acquisitions of Indian companies due to the current Covid-19 pandemic.
Prime Minister Narendra Modi announced the “Make in India” initiative called
AatmanirBhar Bharat” to support Vocal for Local products and manufacturing. In this year 2021- 2022, Government had increased the import duty on several electronics products include mobile chargers that are imported from other’s countries and manufactured outside India.
Government of India announced the ban of 56 Chinese apps in the month of June, 2020 including popular mobile game PUBG and TikTok- short video app on the behalf of national security and severity of India.
This comes amid discussions about setting a cap for Chinese investment, below which prior approval for sector that are on the automatic approval route would be waived.
Several investments from China including popular automobile company are awaited to do business in India still awaited to get government clearance in automobile sector.