Cabinet today approved changes in guidelines on investments from countries sharing a land border with India. The amendments in the FDI policy aim to unlock greater FDI inflows from global funds for startups and deep tech and take forward the agenda of ease of doing business. Earlier, due to the COVID pandemic, the government had amended the extant FDI Policy vide Press Note-3 dated 17th April 2020 (PN3) in order to curb opportunistic takeovers and acquisitions of Indian companies due to the pandemic.

 

Today, the government has given its nod to changes in FDI policy to provide for a definitive timeline for investments in critical sectors requiring approval under PN3. 

 

An expeditious decision in 60 days will help companies enter into collaborations to expand manufacturing in India. The 60-day decision/approval timeline will help companies enter into joint ventures to access technologies and integrate with global supply chains

 

It is expected that the new guidelines will provide clarity and ease of doing business in India and facilitate investments which can contribute towards greater FDI inflows, access to new technologies, domestic value addition, expansion of domestic firms and integration with the global supply chains.

 

This would help in leveraging and enhancing India’s competitiveness as a preferred investment and manufacturing destination. Increased FDI inflows would supplement domestic capital, support the objectives of Atmanirbhar Bharat, and accelerate overall economic growth.