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ARTICLE · 30 AUGUST 2024

Foreign Investment In India From Bordering Countries: A Case For Review

S&R Associates
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On April 17, 2020, the Department for Promotion of Industry and Internal Trade ("DPIIT") issued the Press Note No. 3 (2020 Series) ("PN3") with the primary...

IndiaGovernment, Public Sector
Rajat Sethi
Rajat Sethi
Oshika Nayak
Oshika Nayak

On April 17, 2020, the Department for Promotion of Industry and Internal Trade ("DPIIT") issued the Press Note No. 3 (2020 Series) ("PN3") with the primary objective of "curbing opportunistic takeovers and acquisitions of Indian companies due to the COVID-19 pandemic". PN3 amended the Consolidated Foreign Direct Investment Policy of India, 2017 ("FDI Policy") and made government approval a mandatory requirement for foreign direct investments ("FDI") originating from countries sharing land border with India. This marked a significant deviation from India's previous FDI policy and came against the backdrop of the economic and political challenges posed by the COVID-19 outbreak and the border conflict with China in 2020. However, as things stand today, there is a need to reflect on PN3's impact on India's FDI landscape and consider whether this framework needs modifications.

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This insight/article is intended only as a general discussion of issues and is not intended for any solicitation of work. It should not be regarded as legal advice and no legal or business decision should be based on its content.

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