As Foreign Investment Rises, India Addresses Security Concerns

India appreciates foreign investment, but it also wants to build safeguard to its flourishing telecommunications, media, airline, pharmaceutical and other sensitive industries. A Foreign Investment Promotion Board will review investments, pointing out any that could represent possible threats. With overseas direct investment expected to reach $10 billion this year, the legislation could impact many mergers and investment deals. India joins countries like the US and the UK in adopting a more cautious attitude on security. For example, some politicians opposed appointment of a Greek citizen to run an airport used by the nation’s leaders. India has been particularly suspicious of any deals that have links to Pakistan or China. The new security proposals emerged shortly after the July bombings of a commuter train in Bombay, as well as increased threats to government leaders. The government promises to give solid reasons for the denial of any deal. – YaleGlobal