Earlier in April 2020, following the COVID-19 pandemic the government has made an agreement compulsory for foreign investments from countries that share land borders with India to control unscrupulous takeovers of domestic firms.
China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan are the countries that share land borders with India as per the decision government approval for investments any sector in India it is being needed to have FDI proposals. According to officials, the Manufacturing of heavy machinery, automobile, auto components; computer software and hardware; trading, eCommerce, and manufacturing of light engineering and electrical are the important sectors under which these FDI proposals are mainly included.
Several proposals have been received by the three other departments, including the ministry of new and renewable energy and the department of pharmaceuticals, added the official. Up to June 15, this year undecided FDI proposals received under this decision in the Ministry of Electronics and IT; Department for Promotion of Industry and Internal Trade (DPIIT); and Ministry of Heavy Industries are over 40.
“A company or an individual from a country that shares a land border with India can invest in any sector here only after getting government approval,” the Department for Promotion of Industry and Internal Trade (DPIIT) said in a press release in April this year. Committed FDI cells to process these proposals expeditiously as been taken in advice by All administrative ministries and departments. From April to June India has received USD 17.6 billion worth of FDI.