In a major step towards normalising economic relations, India Wednesday announced changes in regulation to allow investment from Pakistani firms and individuals.
The Department of Industrial Policy and Promotion (DIPP) issued a circular making changes in the Consolidated FDI Policy to allow investments from the neighbouring Pakistan.
The government of India has reviewed the policy and “decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the government route,” the ministry of commerce and industry said in a statement.
Pakistani investments are allowed with immediate effect in sectors and activities other than defence, space and atomic energy, it said.
