Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

(FC-I Section)

Press Note No.3 (2012 Series)

Dated: 1^st August, 2012

Subject: Review of the Foreign Direct Investment policy - permitting investments from Pakistan.

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 FOI 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.

(Anjali Prasad)

Joint Secretary to the Government of India

Foreign investment from Pakistan permitted under government route, excluding defence, space and atomic energy sectors. Foreign direct investment policy amended to permit investments by citizens of Pakistan and entities incorporated in Pakistan only under the Government route, with an explicit exclusion for defence, space and atomic energy; citizens and entities of Bangladesh may invest only under the Government route. The amendment to Paragraph 3.1.1 takes immediate effect.