Indian government says FDI with even the smallest Chinese holding will need govt nod

During the Corona period, China started investing in India, so that the Modi government started keeping a watch on FDI coming from neighboring countries in the month of April. It was decided that there will be no FDI from these countries through automatic route.

However, then there was a discussion on this, there will be a limit to it, so that if more investment is made, it will have to get the approval of the government first.

It was believed that the maximum limit of FDI could be fixed at 10% under the Companies Act or 25% under the Money Laundering Act, but now an official has revealed that the government has not set any maximum or minimum limit is. That is, FDI coming from neighboring countries like China, no matter how big or how small, must first get the government's permission for it.

The government is doing all this so that Chinese companies like Singapore or any third country like Mauritius Do not enter India through. Startups like Paytm, Zomato and BigBasket are also closely watching the government's move, with China investing heavily. Guidelines for investment from neighboring countries are also likely to be finalized in the next few days.