According to the latest updates, the Indian government has issued G.O. against the nation China. It says that government clearance is very much important for all forms of investments, even the indirect ones. Ergo, this policy is for all the countries sharing borders with the country India.
The department for the promotion of industry and internal trade on Saturday issued a press note 3 stating that there will be under approval route for all the investments. Hence, this is for all the countries sharing land borders with India. Transfer of ownership or any kind of FDI in India, directly or indirectly resulting in any beneficial ownership will be restricted by the requirement of government ownership. The press note says that these restrictions, takeovers or acquisitions of Indian companies are all because of the current pandemic disease COVID-19.
Furthermore, the decision is going to have future implications on investments by venture capital funds and start-up segments that have risen in Chinese investments in the past few years. The massive economic slowdown has weekend many of India cooperate further making them take this decision. The government said that this is largely going to impact Chinese investments.
Lastly, we would like to say that new norms will come into effect from the date of notification under the Foreign Exchange Management Act. Stay updated with us to have more information regarding COVID-19 and the economy of India.