Govt considering foreign investment regulatory mechanism for FDI supervision

The Indian government is exploring the creation of a regulatory mechanism for supervising Foreign Direct Investment (FDI) inflows. The move comes amid increasing global scrutiny of foreign investments and their potential geopolitical impacts. The regulatory framework aims to streamline FDI approvals, enhance transparency, and ensure compliance with national security concerns. This mechanism could also address issues such as sectoral limits and investment routes. Currently, the government is consulting various stakeholders, including industry leaders and policy experts, to refine the regulatory proposal. The new system is expected to strengthen India's position as an attractive destination for foreign investments while safeguarding its strategic interests.