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What significant action has the Indian government taken to regulate foreign investments from countries sharing land borders with India?
  • a)
    Complete ban on all foreign investments
  • b)
    Mandatory prior approval for investments
  • c)
    Increased taxes on foreign investments
  • d)
    Promoting partnerships with foreign companies
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What significant action has the Indian government taken to regulate fo...
The Indian government has mandated that foreign investments from countries sharing a land border with India must receive prior approval. This measure was implemented to enhance scrutiny and control over investments, especially in light of security concerns related to Chinese investments. By requiring approval, the government aims to prevent potential threats to national security and to ensure that incoming investments align with India's economic interests. This strategic move reflects India's broader efforts to safeguard its economic framework and internal security against undue foreign influence. Notably, this policy was part of a series of actions taken since the tensions between India and China escalated in 2020.
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What significant action has the Indian government taken to regulate foreign investments from countries sharing land borders with India?a) Complete ban on all foreign investmentsb) Mandatory prior approval for investmentsc) Increased taxes on foreign investmentsd) Promoting partnerships with foreign companiesCorrect answer is option 'B'. Can you explain this answer?
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