COVID-19: Changes To India's FDI Regime

In a significant move, the Government of India has reviewed the Indian FDI policy to "[curb] opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic", ostensibly by Chinese investors.

The amendments are contained in Press Note No. 3 (2020 Series) dated April 17, 2020 issued by the Department for Promotion of Industry and Internal Trade, Government of India, and will become effective from the date on which the principal foreign exchange regulations are amended.

Pursuant to the amendment:

1. all investments by entities incorporated in a "country which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country" will require prior regulatory approval;