core sector communique

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

1.0  Present Position: 1.1 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. 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 FOI 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. Dept. of Industrial Policy & Promotion, Ministry of Commerce & Industry