On October 1, 2020 The Government of India has set up a screening panel to examine all Chinese foreign investment proposals. The panel is headed by the home secretary, Ajay Kumar Bhalla and secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) as a member.
Note– The inter-ministerial committee has been set up to examine the proposals received by various ministries that were sent to the Home Ministry for security clearances.
Points to be Noted
i.After the committee examines the proposals on the perspective of ownership and its implications for security, the proposal may be approved if they are not controversial.
ii.Over 100 proposals involving foreign direct investment (FDI) from China are pending.
iii.From April 2000 to June 2020, FDI from China was USD 2.4 billion or 0.51% of the total.
Prior Nod for Critical Sector Investments
i.DPIIT notified the new FDI policy 2017, amended under Foreign Exchange Management Act (FEMA), 1999.
ii.An entity of a country that shares land borders with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country can only invest under the government route
iii.Investments in critical sectors including defence, satellites, mining, civil aviation, media, private security agencies and telecommunication, requires prior government approval or clearance by the ministry of home affairs.
- As per the experts, The Government should determine the security criteria and investigate from the perspective of data theft.
- Security grounds also refers to the company’s activities and how it handles data. The government must ensure that data does not fall into the wrong hands.
Recent Related News:
The Government of India under the Ministry of finance, Department of Revenue has set up a three-member committee headed by Secretary (retired)G.K. Pillai for determination of ceiling rates under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The two other members are Y G Parande, retired Central Board of Indirect Taxes & Customs member and Gautam Ray, retired chief commissioner of custom and central excise.
About Ministry of Commerce and Industry:
The Department for Promotion of Industry and Internal Trade (DPIIT) is under the Ministry of Commerce and Industry.
Union Minister– Piyush Goyal(Constituency- Rajya Sabha, Maharashtra)
Minister of State– Hardeep Singh Puri, Shri Som Parkash