Active Stocks
Fri Apr 12 2024 15:57:45
  1. Tata Steel share price
  2. 163.50 -1.00%
  1. NTPC share price
  2. 362.00 -0.32%
  1. ITC share price
  2. 430.10 -1.56%
  1. HDFC Bank share price
  2. 1,518.90 -1.10%
  1. State Bank Of India share price
  2. 766.75 -1.57%
Business News/ News / India/  Temporary impact on investment flow to India due to govt curbs: CEA Subramanian
BackBack

Temporary impact on investment flow to India due to govt curbs: CEA Subramanian

There will be a temporary impact on investment flow to start-ups due to the curbs imposed by the government to stop opportunistic takeover by firms from countries with which India has border tensions, chief economic adviser KV Subramanian said

Chief Economic Advisor KV Subramanian (PTI)Premium
Chief Economic Advisor KV Subramanian (PTI)

NEW DELHI, FOREIGN INVESTMENTS : There will be a temporary impact on investment flow to start-ups due to the curbs imposed by the government to stop opportunistic takeover by firms from countries with which India has border tensions, chief economic adviser KV Subramanian said on Wednesday.

According to a Press Note 3 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in April, a company or an individual from a country that shares land border with India can invest in any sector here only after getting government approval.

The decision has bearing on foreign investments from countries like China and Hong Kong.

Speaking at a virtual event organized by FICCI, Subramanian said investment, both direct and indirect, coming from countries, especially with which India has border tensions, needs to be scrutinised.

As a result, he said, "There will be some impact on start-up funding in the short run, but I do think that space will get filled by a large number of private equity (PE) companies from other countries."

He was replying to a question on if Press Note 3 will have any impact on investment flow from Hong Kong.

PE firms from other countries are interested in participating in the start-up ecosystem, he said, adding that "I expect this impact to be temporary".

India received FDI worth USD 2.34 billion ( 14,846 crore) from China between April 2000 and December 2019.

Speaking on insolvency and bankruptcy process, Subramanian said the ecosystem of creative destruction is important for any economy.

"IBC (Insolvency and Bankruptcy Code) process is an evolving process and there is still scope for making it more efficient," he said.

He said there are some important market failures in creative destruction which need to be focused on to bring in greater efficiency.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 Oct 2020, 04:48 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App