Temporary impact on investment flow to India due to govt curbs: CEA

October 14, 2020 16:31

There will be a temporary impact on investment flow to start-ups due to the curbs imposed by the government to stop opportunistic takeover by firms from countries with which India has border tensions, Chief Economic Adviser K V Subramanian said on Wednesday. According to a Press Note 3 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in April, 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 decision has bearing on foreign investments from countries like China and Hong Kong.

Speaking at a virtual event organized by FICCI, Subramanian said investment, both direct and indirect, coming from countries, especially with which India has border tensions, needs to be scrutinised.

As a result, he said, "There will be some impact on start-up funding in the short run, but I do think that space will get filled by a large number of private equity (PE) companies from other countries." He was replying to a question on if Press Note 3 will have any impact on investment flow from Hong Kong. PE firms from other countries are interested in participating in the start-up ecosystem, he said, adding that "I expect this impact to be temporary".

« Back to LIVE

TOP STORIES

At $84 bn, India ranks fourth in 2023 military spend: SIPRI report

The increase in India's military spending was "mainly a result of growing personnel and operations costs" which made up almost 80 percent of the total military budget in 2023, the SIPRI report claimed.

MI Vs RR: Who Took The Best Catch? Vote!

Royals, who were playing their last IPL match of the season in Jaipur, outplayed Mumbai in all departments, bat, ball and fielding.

Winning Worlds in Olympic category was huge: Lovlina

Lovlina Borgohain is aware that fierce competition awaits her at the Paris Olympics but the ace Indian boxer is quietly confident of snaring a second successive Games medal, having found considerable success in her new category, which is...

INDIA leader will be decided after ....: Vijayan amid Cong-CPM rift

He said, during a press meet in Kannur, that during the LS polls, alliances were being formed in various states as part of the platform and its result was that the Bharatiya Janata Party was being largely isolated.

Don't expect too many high-scoring games in T20 World Cup: Miller

South Africa and Gujarat Titans' middle-order batter David Miller doesn't expect too many high-scoring matches in the upcoming T20 World Cup in the Americas as he feels the pitches there will be on the slower side.