FDI policy amended for neighbours to curb opportunistic takeovers, Rahul Gandhi thanks govt for ‘noting his warning’

New Delhi: Congress leader Rahul Gandhi has welcomed the move of the government to amend the FDI norms, making government approval mandatory for foreign investment in some specific cases.

“I thank the Govt. for taking note of my warning and amending the FDI norms to make it mandatory for Govt. approval in some specific cases,” Rahul said in a post on social media.

The government on Saturday amended the FDI norms, making government approval mandatory in some specific cases.

According to a statement issued by the Department for Promotion of Industry and Internal Trade (DPIIT), the government said that an entity of a country which shares a land border with India can invest only after receiving government approval.

“However, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the government route,” said the statement.

The new rules will also apply to the transfer of ownership of any existing or future FDI in an entity in India directly or indirectly, the DPIIT said.

Mr Gandhi had asked the government to ensure that Indian companies did not face any hostile takeover bid by foreign companies during the COVID-19 pandemic.

“The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers,” he had posted on Twitter.

“The Govt must not allow foreign interests to take control of any Indian corporate at this time of national crisis,” he said.

His comments came days after reports suggested that Chinese investors were scouting for shares in distressed European companies. (UNI)