You are here: Home » Economy & Policy » News
Business Standard

Most FDI proposals in 3 depts from nations sharing land border with India

Electronics and IT, industry and internal trade, and heavy industries are the three industries

Topics
Foreign Direct Investment FDI | India's economic growth | GDP

Press Trust of India  |  New Delhi 

FPI, foreign investments, investors, FDI, funding, growth, market

The government has received maximum foreign direct investment (FDI) proposals in three departments -- electronics and IT, industry and internal trade, and heavy industries -- from countries sharing land border with India, an official said.

In April 2020, the government had made its prior approval mandatory for foreign investments from countries that share land border with India to curb opportunistic takeovers of domestic firms following the COVID-19 pandemic.

Countries which share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. As per that decision, FDI proposals from these countries need government approval for investments in India in any sector.

The major sectors under which these FDI proposals mainly came included manufacturing of heavy machinery, automobile, auto components; computer software and hardware; trading, ecommerce, and manufacturing of light engineering and electrical, the official said.

Besides, these three departments, the ministry of new and renewable energy and department of pharmaceuticals have also received several proposals from these countries, the official added.

Further, pending FDI proposals received under this decision up to June 15 this year in the Ministry of Electronics and IT; Department for Promotion of Industry and Internal Trade (DPIIT); and Ministry of Heavy Industries are over 40.

Most of the foreign investment proposals have come from China and Hong Kong. Besides, Nepal, Bhutan and Bangladesh too have submitted certain applications.

In April this year, the Department for Promotion of Industry and Internal Trade (DPIIT) came out with a press note stating that a company or an individual from a country that shares land border with India can invest in any sector here only after getting government approval.

An inter-ministerial committee has been formed by the government to scrutinise these proposals, they said adding most of the investments are for brownfield projects (means in existing Indian companies).

All administrative ministries and departments have been advised to have dedicated FDI cells to process these proposals expeditiously.

India has received USD 17.6 billion worth of FDI during April-June this fiscal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, September 19 2021. 14:11 IST
RECOMMENDED FOR YOU
.