Currently in India foreign direct investment in farmland is banned and banks are not permitted to issue loans for the purchase of farmland, even for domestic investors, except in specific cases of large projects that would generate revenue. However, the India government has created a cabinet committee to investigate the possibility of reversing this policy and allowing foreign realtors to buy agricultural land. Pushing for the reversal is the Union Urban Development (UD) which claims that farmland is already being acquired for development with land use changes being sought after the purchase.
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