INDIA: New FEMA rules may allow Pakistani foreign investment in India

Monday February 20 2012

The Indian government plans to bring changes in the Foreign Exchange Management Act (FEMA) to allow investments from Pakistan.  An unidentified senior government official has stated that the “Commerce ministry has sent a proposal to the Finance ministry for change in FEMA rules to allow Pakistan foreign investments in India.”  According to the source, investments from Pakistan could be allowed by a change in the FEMA regulations by simply issuing a notification. Pakistan is the only country from where Pakistan foreign investment is not allowed in India.

This information will be updated once more details become available.