FDI from Pakistan Allowed under
Government Route
1.0 Present Position:
1.1 As per paragraph
3.1.1 of ‘Circular 1 of 2012- Consolidated FDI Policy’, effective
from 10.04.2012, investment from a citizen of Pakistan or an entity incorporated
in Pakistan is not permitted.
2.0 Revised Position:
2.1 The Government of India has reviewed the policy, as contained in
paragraph 3.1.1 of the circular ibid and 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.
3.0 Amendment to paragraph 3.1.1:
3.1 Accordingly, Paragraph 3.1.1 of ‘Circular 1 of 2012-
Consolidated FDI Policy’, effective from 10.4.2012, is amended to read as
below:
"3.1.1 A
non-resident entity can invest in India, subject to the FDI Policy. A citizen
of Bangladesh or an entity incorporated in Bangladesh can invest only under the
Government route. A citizen of Pakistan or an entity incorporated in Pakistan
can invest, only under the Government route, in sectors/activities other than
defence, space and atomic energy."
4.0 The above
decision will take immediate effect.
[Source: Ministry of Commerce &
Industry, PIB Press Note dated 1st August 2012]