PN-1 may be scrapped
Moves are afoot by the government to scrap Press Note 1 to make it easier for foreign firms to invest in India. PN-1 protects the interests of domestic companies from their foreign joint venture partners by mandating that the foreign companies would have to obtain their approval before making a fresh investment in the same sector in India.
Moves are afoot by the government to scrap Press Note 1 to make it easier for foreign firms to invest in India. PN-1 protects the interests of domestic companies from their foreign joint venture partners by mandating that the foreign companies would have to obtain their approval before making a fresh investment in the same sector in India.
Scrapping PN-1 would mean that foreign firms would no longer have to seek a no-objection certificate from their local joint venture partners.
The government hopes that the move will help in attracting more FDIs (foreign direct investments) in the country by projecting an investor friendly destination image of the country.
—RJ
