By BullScreen Editorial Team 
India’s move to ease certain foreign investment rules is expected to boost capital inflows into key manufacturing sectors such as electronics, advanced batteries, and rare earth materials, according to Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade.
The Union Cabinet recently approved amendments to Press Note 3, which previously required government approval for investments from all countries sharing a land border with India. Under the revised framework, companies with less than 10% ownership from such countries will be exempt from mandatory approval, while proposals in key manufacturing sectors will be cleared within 60 days.
Bhatia said the change will bring greater certainty for investors and help unblock capital that was earlier delayed due to strict screening rules. The earlier policy meant that even a minor shareholder from a land-border country could trigger additional scrutiny.
Industry groups say the policy shift could accelerate investments in electronic components, semiconductor materials, polysilicon, silicon wafers, advanced battery parts, and rare earth magnets, critical inputs for India’s technology and clean energy industries.
Analysts also expect the move to encourage more joint ventures and strategic partnerships with global firms, while maintaining national security checks for controlling stakes. The policy is likely to reduce import dependence and strengthen India’s domestic electronics manufacturing ecosystem over time.