India's Unchanged Stance on FDI Policy for Neighboring Nations

The Indian government has not altered its 2020 FDI policy requiring prior approval for investments from countries sharing a land border. These countries include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. Despite reports, the FDI application process for China remains unaltered.

The Indian government has maintained its foreign direct investment (FDI) policy for countries sharing a land border, despite recent reports suggesting changes to the process for China. Sources confirmed on Wednesday that no amendments have been made since the introduction of Press Note 3 in 2020.

This policy mandates that investors from bordering countries such as China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan must secure prior government approval for any sector investment within India. The process is uniformly applied to all these nations without exception.

As of now, an inter-ministerial committee led by the Home Secretary handles these applications, while the majority of FDI enters India through automatic approval. Contrary to some reports, the approval process for China has not been 'streamlined,' according to sources.