Review of the Foreign Direct Investment policy – permitting investments from Pakistan.

Present Position:

As per paragraph 3.1.1 of Circular 1 of 2012- Consolidated FDI Policy`, effective from 10.04.2012, investment from a citizen of Pakistan or an entity incorporated in Pakistan is not permitted.

Revised Position:

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.

Amendment to paragraph 3.1.1:

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.”

The above decision will take immediate effect.

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