Electronics and IT, industry and internal trade, and heavy industries are the three departments wherein, the government has received maximum foreign direct investment (FDI) proposals from the neighboring countries sharing land border with India. China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan share land border with India. The government had made the foreign investments approval from border sharing countries mandatory in April 2020, to reduce the takeover of local companies. Hence, government approval is required from these countries for investments in any sector in India for FDI proposals.
Manufacturing of heavy machinery, automobile, auto components; computer software and hardware; trading, ecommerce, and manufacturing of light engineering and electrical, are the major sectors under the FDI proposal. Several proposals have also been received by the ministry of new and renewable energy and the department of pharmaceuticals.
China and Hong Kong have submitted maximum foreign investment proposals. Certain applications have also been shared by Nepal, Bhutan and Bangladesh
“A company or an individual from a country that shares land border with India can invest in any sector here only after getting government approval,” the department for the promotion of industry and internal trade (DPIIT) had stated in April 2021.
India has received $17.6 billion worth of FDI during April-June this fiscal.