New Delhi: The government has received maximum foreign direct investment (FDI) proposals in three departments – electronics and IT, industry and domestic trade, and heavy industries – from countries sharing a land border with India, said a manager.
In April 2020, the government made its pre-approval mandatory for foreign investment from countries sharing a land border with India to curb opportunistic takeovers of domestic businesses in the wake of the COVID-19 pandemic. .
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. In accordance with this decision, FDI proposals from these countries require government approval for investment in India in any sector.
The main sectors from which these FDI proposals mainly originated included heavy machinery manufacturing, automotive, automotive components; computer software and hardware; light and electrical engineering commerce, e-commerce and manufacturing, the official said.
In addition, these three departments, the Ministry of New and Renewable Energy and the Department of Pharmaceuticals have also received several proposals from these countries, the official added.
In addition, pending FDI proposals received under this decision until June 15 this year at the Ministry of Electronics and Informatics; Directorate for the Promotion of Industry and Internal Trade (DPIIT); and the Ministry of Heavy Industries are over 40 years old.
Most of the foreign investment proposals came from China and Hong Kong. In addition, Nepal, Bhutan and Bangladesh also submitted some nominations.
In April of this year, the Department for the Promotion of Industry and Internal Trade (DPIIT) issued a press note stating that a company or individual from a country sharing a land border with India cannot invest in any sector here only after obtaining government approval. .
An inter-ministerial committee has been formed by the government to review these proposals, they said, adding that most of the investments are in brownfield projects (i.e. existing Indian companies).
All ministries and administrative departments have been advised to have units dedicated to FDI to process these proposals as soon as possible.
India received $ 17.6 billion in FDI from April to June of this fiscal year.