In a bid to give a big boost to trade and bilateral relations and enhance economic cooperation, the Union government on Wednesday notified a law permitting investments by Pakistan citizens and companies in India in sectors/activities other than defence, space and atomic energy.
“The government has reviewed the policy 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,’’ says the notification issued by the Department of Industrial Policy and Promotion.
“The citizens and companies of Pakistan would also be able to float joint ventures and participate in any kind of investment ventures, including real estate, stock market, energy and other sectors. These investments will be screened and vetted before being given approval,’’ a senior DIPP official said.
Pakistan was the only country in the negative list under the Foreign Exchange Management Act (FEMA), which prohibits investments in India. Sri Lanka was removed from the list in 2006 and Bangladesh in 2007.
Officials in the Industry Ministry said that in order to address the security concerns over investments from Pakistan, FDI proposals from Islamabad would be routed through the Foreign Investment Promotion Board (FIPB), which is headed by the Economic Affairs Secretary in the Finance Ministry.
Both countries had agreed to allow one-year multiple entry visas for business visitors and entry and exit through different cities.
Cordial relations between neighbor countries are a good thing. But these must be reciprocal. Pakistan's past record is far from reliable. This may be because the politics in Pakistan is controlled by ISI, who is the mastermind behind all terrorist activities against India. We have accorded MFN status to Pakistan long ago, but they are still thinking about according MFN status to India. Possibility of nefarious activity by ISI under cover of FDI cannot be ruled out. We already know the outcome of Friendship Bus.... Kargil war thrust upon us!!!! Are we vigilant enough to take care of this aspect? Give them a little time to establish their credentials. It Would be more prudent to allow trade with Pakistan under special license instead of haste in allowing FDI? Intentions of Gilani's government may be sincere, but nobody can predict when the Army will take over. So let us take lessons from the past history and proceed with extreme caution.
It is indeed a commendable step from India's side and would really help in boosting the trade between two countries which in turn would help in dousing the fire of resentment that both sides have.
India will never learn !!
It is welcome step of Government of India. Once again, India proves how
soft It had been in its foreign policy even towards the most mischievous
country, the Pakistan.
That is great, friendship with the devil, and we are to expect heaven ?
God Bless India.
This is a good development. For all his flaws, DrManmohan Singh has been
exceptional in his foreign policy especially our ties with Pakistan. A less restrictive
visa regime for the border states should also be looked at carefully.
Very bad move, the money and counterfeit currency and money through terrorism coming from Pakistan should be repulsed. Why deos India get involved with a country that seeks our destruction?..
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