Delhi: The finance ministry has opposed restricting
FDI inflows in to the country solely on the criteria of
the country of origin of the investment. It has instead
mooted a case-by-case scrutiny to address security concerns,
in response to a note by the national security adviser,
circulated by the prime minister's office.
the ministry agrees to a complete scrutiny of all FDI
proposals, it has opposed any discrimination against FDI,
vis-a-vis domestic investment, saying that no country
should be singled out on security grounds.
its note to the PMO, the finance ministry has said that
while all security-related scrutiny should be made before
the clearance of a FDI proposal, it should not be discriminated
against once permitted.
says that security laws should be the same for FDI and
domestic investment. The
security issue in FDI arose after the investment of of
Egypt's Orascom Telecom in Hutchison-Essar became known
criticism from the PMO for its potential threats to national
security overseas investments in strategic sectors like
Department of Telecom also says that FDI and security
should be dealt with separately.