The Economic Times reports that the Government plans to do away with Press Note 1 thereby making it easier for foreign companies to make investments into India where they have had a previous joint venture. This still appears to be in the stage of a proposal only, and it is not clear what form the ultimate change will take, i.e. whether this requirement will be done away with altogether, or whether it would only be diluted further.
On a separate note, about a year ago I had set out some observations on the need to review Press Note 1 in the light of changed circumstances over the years.
(Update – July 21, 2008: Today’s Economic Times carries an editorial titled “Get rid of Press Note 1”)