New Delhi:
A day after India said it will allow Foreign Direct Investment (FDI) from Pakistan, the BJP has said when it comes to Pakistan and China, trading is better than allowing FDI, as it could be misused by those wanting to harm India.
"We always believe that trade with countries and neighbours is the best way forward. Because trading is what is the need of the hour for consumers of both sides and that is what will be traded, and trade is a good thing. The Government has to be concerned about the threats of open channels being used by some undeserving elements," BJP spokesperson Prakash Javadekar said today.
The BJP's apprehensions come even as the Congress sought to allay security concerns about FDI from Pakistan. The party says there will be no compromise on security.
"We will not make any compromise with security. We want good relationship with our neighbouring countries including Pakistan. That's the reason we have allowed FDI from Pakistan. People of both countries will get benefit out of it," said Congress leader Rashid Alvi.
NDTV has learnt that each and every FDI proposal from Pakistan will be subjected to an elaborate series of checks before it's given a security clearance.
Sources say FDI from Pakistan will continue to be cleared on a case-to-case basis. Security clearance from the Home Ministry will depend on factors like who the directors of the company are and its background; whether it has been involved in anti-India activity and the area in which they want to invest.
Sources also say telecom is likely to continue to be a no-go for investments for some more time.
This is the first time India will allow FDI from Pakistan which is a result of the improving relations between the two neighbours. This will also pave the way for industries to set up businesses in the Indian market.
The two countries have already agreed on one-year, multiple-entry visas and an agreement is expected soon. Pakistan agreed to normalise trade and moved closer last month to granting the most-favourable nation (MFN) status to India.