Govt put out update FDI policy, ambiguity on Chinese firms continues

India’s Commerce Ministry on Wednesday made public a new edition of foreign direct investment (FDI) policy, listing measures the government has taken to seek investors but it didn’t clarify on the issue of "beneficial ownership".

The new edition includes the April 2020 circular that said foreign investment from countries sharing a land border with India requires prior approval of the Indian government. That included investment from any entity "beneficially owned" by entities in countries sharing a land border with India. 

This has given rise to ambiguity since foreign investors and funds which although not owned/controlled by Chinese entities but have minority stakes