Rahul Gandhi thanks Modi govt for 'taking note' of his warning and amending the FDI norms
Photo: PTI

Congress leader Rahul Gandhi has been credited by many for showing great foresight when it came to the novel coronavirus outbreak. Since Gandhi 'predicted' how the virus would hit India in Feburary, many netizens have urged the government to take his advice on related topics.

Last week he had urged the government to not let 'foreign interests' take control of Indian corporates during this time of 'national crisis'.

"The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers," Gandhi had warned.

On Saturday, the Centre made it mandatory to get its prior approval for foreign investments from countries that share land border with India to curb "opportunistic takeovers" of domestic firms. Following the news, Gandhi took to Twitter to "thank the Govt. for taking note of my warning and amending the FDI norms".

Countries sharing borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.

As per the Department for promotion of Industry and Internal Trade's press release, "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."

A PTI report added that the amended policy is intended to halt "opportunistic" takeovers and acquisitions of Indian companies as the country combats the novel coronavirus outbreak.

It also said that government approval will be mandatory for any transfer of ownership of any existing or future FDI in a company in India, which results in change in beneficial ownership, falling under this new restriction.

Sources add that this would restrict foreign investments from neighbouring China. The decision comes amid fears that companies in China might attempt takeover bids as domestic companies grapple with a pan-India lockdown and the viral outbreak.

(With inputs from PTI)

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