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

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

(FC-I Section)

Press Note No.3 (2012 Series)

Dated: 1^st August, 2012

Subject: 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.

(Anjali Prasad)

Joint Secretary to the Government of India