India, April 1 -- The Centre's amendment of Press Note 3 (PN3) has ruffled some feathers. PN3 was issued in April 2020, placing curbs on Chinese investment in India. It was a response to the perceived threat of opportunistic takeovers of Indian businesses by Chinese companies during Covid-19.

This note amended the foreign direct investment (FDI) policy involving all countries sharing a land border with India. Ostensibly aimed at China, it subjected all FDI from such territories to government approval. Furthermore, the "transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in beneficial ownership" of entities situated in such countries was also made subject to government approval.

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