COVID-19 and Global Tightening of FDI Screening

One of the most disruptive developments impacting deal-making in India in 2020 came on account of geopolitical dynamics (i.e. border tensions with China) rather than the COVID-19 pandemic. Earlier this year, owing to the geopolitical tensions between India and China at the Indo-China border, the Indian Government issued directions restricting all investments coming into India from entities situated in countries bordering India (including China). In this article, we analyse the implications of the restrictions introduced by the Indian Government on foreign investments in India and provide a high-level overview of FDI screening measures introduced in major countries around the world.