By Mugdha Variyar Apr 20, 2020 2:51:03 PM IST (Updated)
India wants to screen every investment into Indian companies coming from Chinese entities, and this may not bode well for the scores of startups counting on Chinese capital during the slowdown.
India wants to screen every investment into Indian companies coming from Chinese entities, and this may not bode well for the scores of startups counting on Chinese capital during the slowdown.
The government on Saturday issued an update to the FDI policy, stating that an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
This is effectively going to bring the billions of dollars of future Chinese investments into Indian startups and the tech ecosystem under government scrutiny, which is likely to affect deals.