New Delhi: Indian government on Wednesday formally allowed foreign
direct investment (FDI) from Pakistan.
The move to allow FDI from Pakistan is seen as a series of
confidence building measures to build trust between both the nuclear-armed
neighbours who were already engaged in acrimonious war of maintain co-status
over several issues.
Reviewing its investment policy government has 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.
According to the amendment made to paragraph 3.1.1 of circular
1 of 2012, 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.
Notably, the above decision will take immediate effect.