Review of the Foreign Direct Investment policy – permitting investments from Pakistan
Press Note No. 3 (2012 Series), dated 1-8-2012
1.0 Present Position :
1.1 As per paragraph 3.1.1 of ‘Circular 1 of 2012 – Consolidated FDI Policy’, effective from 10-4-2012, investment from a citizen of Pakistan or an entity incorporated in Pakistan is not permitted.
2.0 Revised Position :
2.1 The Government of India has reviewed the policy, as contained in paragraph 3.1.1 of the circular ibid and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the Government route, in sectors/activities other than defence, space and atomic energy.
3.0 Amendment to paragraph 3.1.1 :
3.1 Accordingly, Paragraph 3.1.1 of ‘Circular 1 of 2012 – Consolidated FDI Policy’, effective from 10-4-2012, is amended to read as below:
“3.1.1 A non-resident entity can invest in India, subject to the FDI Policy. A citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route. A citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space and atomic energy.”
4.0 The above decision will take immediate effect.
