Government seeks to scrap Press Note 1 to boost FDI

NEW DELHI: In order to liberalise the FDI regime, the government is likely to dispense with a norm that requires foreign investors to seek local partner approval for setting up units in the same area of business.

Press Note 1 of 2005 seeks to protect the interest of domestic companies in joint ventures by ensuring that foreign companies obtain the permission of their local partner, if they decide to go it alone or partner with another Indian company in the same line of business as the existing venture.

Industry sources said scrapping of the Press Note will help the country to attract more FDI, at a time when India’s foreign direct investment has shown a fall.

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