NEW DELHI: Congress on Saturday sought to take credit for the Union government decision to alter existing foreign direct investment norms and make them more stringent in order to prevent hostile takeovers of Indian companies whose businesses have hit a pause button during the countrywide lockdown.
Shortly after the government issued the order, Gandhi tweeted a ‘Thank you’ message to the Union government, for its decision. “I thank the Govt . for taking note of my warning and amending the FDI norms to make it mandatory for Govt. approval in some specific cases, ”Gandhi said on Twitter.
I thank the Govt. for taking note of my warning and amending the FDI norms to make it mandatory for Govt. approval… https://t.co/7DYRF1yc9x Rahul Gandhi (@RahulGandhi)
Congress MP Rahul Gandhi had, last week, recommended that the government should tighten FDI norms in order to protect Indian companies being taken over by foreign interests. In an April 12 tweet directed at the government, Rahul Gandhi said, “The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The Govt must not allow foreign interests to take control of any Indian corporate at this time of national crisis. ”
Congress’ Rajya Sabha MP Rajeev Satav also welcomes the government ‘s decision and thanked it for “heeding” to Gandhi’s advice. “I thank the Government of India for heeding Congress leader. @ Rahul Gandhi’s advice and taking one preemptive step to stop hostile takeovers of Indian companies under pressure due to #COVID . We now look forward to GoI extending support the stressed #MSME sector, ”Satav said on Twitter, reiterating Congress’ demand for a bailout package for the deeply stressed MSME sector.
In an order issued on Saturday, the government made its prior approval mandatory for foreign investments from countries that share land borders with India to curb “opportunistic takeovers” of domestic firms following the coronavirus pandemic, a move which is likely, especially, to restrict FDI from China, and other bordering countries like Bangladesh, Pakistan , Bhutan, Nepal, Myanmar , and Afghanistan.
The government has also indicated that a financial bailout package for the MSME sector may be on the anvil.
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