Ending opportunism

Govt right to crack down on strategic investments from China

The government moved last week to block the “opportunistic” takeover of Indian assets during the ongoing Covid-19 pandemic and associated slowdown. In a notification, the Department of Promotion of Industry and Internal Trade has ruled that an entity of a country that shares land borders with India or where the beneficial owner of an investment in India is situated in or is a citizen of any such country, can invest only under the government route. This means that automatic investment under the foreign direct investment route is forbidden, and that special government approval will be needed. While the notification specifies