INDIA: Pakistan Foreign Direct Investment Welcomed in India

Monday June 11 2012

It has been reported that India is to welcome Pakistan foreign direct investment. The investments will be cleared on a case-by-case basis by the Foreign Investment Promotion Board, which will address security concerns.

According to reports, without India taking the step to engage with Pakistan, the South Asia Free Trade Agreement cannot move forward.

The two countries will have to quickly work out a bilateral investment and protection agreement, which will provide the much needed investor confidence, and a liberal business visa regime will help investors to take the decisive step.

India had originally banned investment from Pakistan on security grounds. However, changes in the Foreign Exchange Management Act will help to remove restrictions on investments from Pakistan.

This information will be updated as more details become available