Investment professionals in India believe that tightening
the country’s foreign direct investment (FDI)
policy is the right way to protect vulnerable companies from
foreign companies looking for value. However, Indian startups
looking for funding may need to look for alternative routes for
funding as a result. Additionally, it is unclear what the
Indian government’s approach will vis-a-vis
Directed primarily at China, India has introduced approval
requirements for investment from any entity of a country it
shares a land border with, including China, Bangladesh,
Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
Before the change, FDI was allowed for certain sectors such
as manufacturing and construction under the automatic route.
For some sectors such as media and aviation, FDI continues
allowed up to certain thresholds without restrictions.
According to Indian think tank Gateway House, from 2015 to
2020, Chinese tech investors invested $4 billion in Indian
startups, with 18...