"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," said a statement from the ministry.
A ban on investments in defence, space and atomic energy will remain and all propositions must be notified to the Indian government.
The decision to accept foreign direct investment from Pakistan was taken in April this year when the trade ministers of the nuclear-armed South Asian rivals met in New Delhi.
They also discussed ways to ease visa curbs on business travel and the possibility of allowing banks from both countries to open cross-border branches.
Pakistan said that Indian government's decision to allow Pakistan's direct foreign investment in India was “a positive step”.
India and Pakistan, which have fought three wars since independence, are channelling their efforts into "trade diplomacy" in a bid to build enough trust to tackle the more troublesome issues that divide them, such as Kashmir.
The improved relations between the rivals stem from Pakistan's decision to grant India "Most Favoured Nation (MFN)" status by year end, meaning Indian exports will be treated the same as those from other nations.
In further progress, the neighbours opened a second trading gate in April along their heavily militarised border, boosting the number of trucks able to cross daily to 600 from 150.
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So has Tribune disabled the code that kept account of "recommended" posts ? That was very effective in gauging what most of the posters think. Disabling it is like exams, where every student gets the same mark, irrespective of merits. That would be detrimental.
@Mohammad Ali Siddiqui:
What plans do you have for ISI ? Will they limit themselves to running kindergartens ?
Wait and see the response of Pakistanis investments in India.
If RAW will be banned in India like the KGB was banned in Russia, I think that people from both the countries can think to take one more step in the positive direction.
Wise move, I reckon both countries are heading towards a better working relationship in future.
@Pakistani Agnostic: "So a Pakistani expatriate living in Riyadh (with properties in Dubai and Bahrain) can invest in Indian real estate or is it just for nationals living in the country"
In the past while FDI from other countries was permiitted, FDI from Pakistan was not. This has changed. The sectors that Pakistanis can invest would be the same that any other foreigner could invest. I do not believe even other foreigners are allowed to invest in India real estate sector.
@Roy If it is not economically viable for a Pakistani to invest in India they should not. They just have one additional option that they did not have before. In effect their menu of investment options has increased and there is no downside to that.
Here and now is buried the two nation theory for ever. Qaid-e-Azam suffered a decisive defeat. Pakistan must seriously find a ground for its existence else where. Sticking to old theme will find us in more comical situations challenging our sanity. Or we may throw a fit and reinvent ourselves as incurable fanatics.
So a Pakistani expatriate living in Riyadh (with properties in Dubai and Bahrain) can invest in Indian real estate or is it just for nationals living in the country
@Syed Shah: "I would want visa relaxation for common folks."
Visa relaxation proposals were agreed between India and Pakistan. When the Indian home secretary came to Pakistan to sign these, Rehman Malik refused to sign saying that the Indian home secretary (who India had empowered to sign on its behalf) was not senior enough for Rehman Malik's liking. HEnce the revised proposals were not signed.
I'm entirely agree with sonam.
Smart move by India. Suppose a Pakistani Business starts a tyre business in India. India gets the plant and jobs. And a ready market because this gentleman from Pakistan will import tyres to Pakistan at a lower cost. India happy. Businessman happy. Pakistanis happy because they get tyres at a less expensive rate. In fact India should open special SEZs along the border for the Pakistani Businessman to open manufacturing units.
@Hafiz Shah Ali "..But both Pakistan and India need to execute Avoidance of Double Taxation treaty to respond to current times..." What double tax? Pakistani elites/industrialists don't pay any taxes to begin with (lowest tax/GDP ratio in the world + bribe the income tax officials).
This move makes very little economic sense. What is the real motive behind this? My guess is that this is a possible exit mechanism for the super rich in Pakistan to get out of the country fast if things spiral out of control in Pakistan(as it well could). By diversifying their assets and building business interests in India, they can move base to India quickly if needed and possibly apply for Indian citizenship if required(as all of them had parents or grandparents who were part of undivided British India). I really don't think Pakistanis should be rejoicing with this news.
The logic behind is that all the money coming in to bollywood to prop up Khans can now be taxed and accounted for. Taxation is prime reason. Killing Hawala business is important but secondary.
So they asking pakistan to open Indian market for investment?
@Indian: Yes, point taken, however do you actually think that Muppets in charge will ever listen to anyone ?
good. more like safety deposit against terror attacks.
Can't say about the Pakistanis but surely Indian state guests in Pakistan like Dawood Ibrahim would now legally try to invest his illegal money in to India.
But both Pakistan and India need to execute Avoidance of Double Taxation treaty to respond to current times.The last full one was executed in 1947 without a new treaty, very little mutual investments will be possible
@Hedgefunder: Dude i fully understand your sentiments. But as Indians it becomes atleast a part responsibility of ours to stabilize Pakistan so that if Pakistanis have stake in India's well being. Their business community will loose business if another incident like Mumbai happens which will make them force their government impose its writ on its citizens and behave responsibly. People earn money by doing business with/in India. So will Pakistanis. But that way we will atleast having someone on the other side of the border who will hold their Govt accountable. The current situation in Pakistan favours more extremism. The least we can do is encourage the sensibility on the other side. Otherwise, people like Hafiz Saeed will continue to exist in open air in Pakistan.....
Which fool wants to invest in India? A plunging rupee and industrial output and soaring inflation, investment is pouring out of India as the Indian economy continues to crumble. You can't build an economic miracle on the back of American propaganda.
I would want visa relaxation for common folks.
@zK:
Both the countries???? One can now anticipate that industrialists/businessmen seeking migration b'cause of lawlessness and unsafe atmosphere in Pakistan, to Bangla Desh, Malaysia, Dubai, etc. will now prefer India. Surely India will offer a warm welcome, due to not one but multiple reasons.
Excellent move!
Have they actually got any money in the first instance ? Secondly why? Its not the case that India lacks foreign investments from western nations, so why from these lot ? This coalition Govt has failed miserably to address the issues that concern the people of India in their dealings with Pakistan !
Nawaz Sharif would be happy.