Introduction
India's policy on foreign direct investment (FDI) is
embodied in the Consolidated FDI Policy dated 15 October 2020 (as
amended from time to time) (FDI Policy). The policy pronouncements
made under the FDI Policy are notified in the Foreign Exchange
Management (Non-Debt Instruments) Rules 2019 (NDI Rules), under the
Foreign Exchange Management Act 1999.
On 14 March 2022, the Department for Promotion of Industry and
Internal Trade, Ministry of Commerce & Industry, Government of
India had issued Press Note 1 (2022 series) (PN 1) to amend the FDI
Policy. The focus of PN 1 was on the review of the FDI Policy for
permitting foreign investment in Life Insurance Corporation of
India (LIC) and other modifications for further clarity of the
existing FDI Policy. This pronouncement of PN 1 was recently
notified in the NDI Rules, vide a gazette notification dated 12
April 2022 issued by the Department of Economic Affairs, Ministry
of Finance, Government of India
