1. INTRODUCTION
On October 28, 2020, the Department for Promotion of Industry
and Internal Trade (the "DPIIT"), after a gap of 3 long
years, unveiled the consolidated foreign direct investment
("FDI") policy, 2020 (the "FDI Policy"). The
FDI policy has been made effective from October 15, 2020.
The FDI Policy consolidates all the regulations on foreign
investment and subsumes and supersedes all press notes, press
releases, clarifications, and circulars issued by the DPIIT, which
were in force as on October 15, 2020. While it replaces the older
policies, it does not overwrite the regime established by the
Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (as
amended from time to time) (the "NDI Rules"). We have
listed the noteworthy deviations that the FDI Policy makes over the
NDI Rules below.
