Easier FDI norms planned
Foreign investors have, in the past, sought the removal of this stipulation, arguing that it prevented them from making investments in the country. Several FDI plans have been blocked due to Press Note 1.
The government is planning to make foreign direct investment norms simpler. On top of its agenda is a proposal to scrap Press Note 1 regulations, which make it mandatory for any foreign company in a joint venture to seek the approval of its local partner before planning fresh investments in other companies. The regulation was introduced in 1998 to shield local companies.
Foreign investors have, in the past, sought the removal of this stipulation, arguing that it prevented them from making investments in the country. Several FDI plans have been blocked due to Press Note 1.
—Rishi Joshi
