Amid the Covid-19 pandemic, and its adverse impact on the economy, the Government of India decided to tweak the Foreign Direct Investment policy.
In order to protect Indian firms vulnerable to 'opportunistic' takeovers and acquisitions, the Narendra Modi administration imposed a government approval requirement for investment by entities from India's neighbouring nations, ie, countries which share a land border with India.
The main motive behind the move is considered to be China's predatory behaviour regarding valuable foreign firms. Watch the full video for more.