The government has revised the minimum threshold for foreign direct investment (FDI) to Rs 20 million from the existing Rs 50 million.
A cabinet meeting held on Friday decided to revise the threshold amount, informed the Minister for Communications and Information Technology Gyanendra Bahadur Karki. Earlier in the budget announcement on May 29, the government had announced revising the limit.
In June 2019, the government raised the minimum threshold amount for FDI from Rs 5 million to Rs 50 million. The government move, however, had invited widespread criticisms from the private sector on the ground that provision could lead to FDI inflow only into small businesses such as restaurants and coffee shops.
