Companies in any country that shares a border with India will have to approach the government for investing in India and not go via the automatic route, the Commerce and Industry Ministry said in a press note spelling out its new foreign direct investment or FDI policy for neighbouring states.FDI in India is allowed under two modes – either through the automatic route, for which companies don’t need government approval, or through the government route, for which companies need a go-ahead from the centre.The revised FDI rule seeks to curb “opportunistic takeovers or acquisitions of Indian companies due to the COVID-19 pandemic”, the ministry said.
