New FDI rules not for Taiwan inflows

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New FDI rules not for Taiwan inflows

In a developing country like India, the existence of Foreign Direct Investment (FDI) is requisite for the growth of economy. Total Foreign Direct Investment in India from year 2000-2019 is US $658,893 million. In the wake of the Covid-19 outbreak, many cosmopolitan investor’s are trying to gain an undue advantage by acquiring Indian companies. To keep a tight rein on this, the government announced new FDI rules.


New norms by Indian Government on FDI:

The new rules announced by Indian government stated that there will be a comprehensive look over in any acquisition or takeover executed in India on Indian Companies. Once the government approves and sanctions, then only the further process can be implemented. This new norms of FDI will be pertinent for all the countries sharing boundaries with India viz. Bhutan, China, and others. Government officials noted the new norms announced by FDI will not be relevant for Taiwan. Smooth flow of operation between Taiwan and India will be continued with no barriers.


India – Taiwan Relationship:

Major chunk of money invested by Taiwan in India exists in sectors like Infrastructure and Energy. India and Taiwan have established a robust economic relation since decades. Approximately 100 Taiwanese companies are doing business in India. The relation between India and Taiwan was established in 1995, since then we hold a powerful relationship with Taiwan. The big question arises, Can’t Taiwan is easily influenced by China with their decisions on Foreign Direct Investment?. Media reports noted that in coming weeks government may clear all the queries on new FDI norms.



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