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FDI Inflow From China Declines To $163.77 Million In FY2

    14 October , 2020         Fdiindia

FDI Inflow From China Declines To $163.77 Million In FY2

On Monday, Minister of state of finance Anurag Thakur, informed Lok sabha that in the last three years there has been reduction in the direct inflow from china with foreign direct investment (FDI) rushing down to $163.77 million in 2019-20. Further adding to the details of FDI inflow from Chinese organization, he said it declined to $299 million from $350.22 million in 2017-18.

In his written reply of first day of monsoon session he said, FDI further came down to $163.77 million.

Considering the outflow from India, He said, it was $20.36 million in calendar year 2020 as compared to '.57 million last year.

Earlier this year, the government drafted press note 3 in order to restrict the takeovers of Indian organizations due to COVID-19 pandemic, he said.

“A non-resident entity can invest in India, subject to the FDI policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route,” he said quoting the Press Note 3.

Further, he said, “a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.”

In his another reply, Thakur said, in the view of pandemic the Department of Expenditure has announced the central share of State Disaster Response Fund (SDRF) to the states including Maharashtra in the first week of April 2020.

Further, to fight against the COVID-19 additional limit of 2 percent of gross state domestic product (GSDP) has been allowed to the states for the years 2020-21, he said.

Out of 2 percent of GSDP allowed to states, amount of Rs 1,06,830 crore (approx. 0.50 percent of GSDP) has been issued to states.