3 months ago
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The easing of rules related to concern from countries sharing a onshore borderline with India volition assistance successful the manufacture of superior goods, physics superior goods, physics components, polysilicon and ingot wafers, precocious artillery components, uncommon world imperishable magnets, and uncommon earths themselves, Department for Promotion of Industry and Internal Trade Secretary Amardeep Singh Bhatia said connected Wednesday (March 11, 2026).
Sector analysts and manufacture players excessively person welcomed the move, saying it volition summation the travel of superior into India, and promote overseas companies to participate into associated ventures here.
Minority ownership allowed
The Union Cabinet connected Tuesday (March 10, 2026) approved changes to the ‘Press Note 3’ issued successful 2020 that had mandated that investments from each countries that shared a onshore borderline with India — referred to arsenic Land Border Countries (LBCs) — would person to unafraid Indian authorities support first.
The caller changes present supply exemptions to companies wherever little than 10% ownership is from LBCs. Further, proposals for LBC concern successful specified sectors specified arsenic superior goods manufacturing, physics superior goods manufacturing, physics constituent manufacturing, polysilicon and ingot wafers, precocious artillery components, uncommon world imperishable magnets, and uncommon earths would beryllium cleared wrong 60 days.
‘Will amended concern certainty’
“Scrutiny of the proposals and governmental concerns volition continue, but the Committee of Secretaries volition expedite the proposals wrong the clip bounds of 60 days” Mr. Bhatia said astatine a property briefing.
“It [the amendment] volition bring a batch of certainty, arsenic determination was a batch of involvement successful concern successful India,” helium added, saying that the alteration would besides yet trim India’s import dependence.
Under the Press Note 3 rules, previously, if adjacent a azygous shareholder successful a overseas institution belonged to a state that shared a onshore borderline with India, that institution would travel nether the Press Note 3 restrictions, Mr. Bhatia explained. As a result, a batch of superior looking to participate India was being blocked oregon delayed.
Electronics assemblage to benefit
Industry bodies and concern analysts person welcomed the decision, saying it could bring successful much superior flows from companies that lone person number shareholding from LBCs.
“For India’s electronics sector, this argumentation tin assistance accelerate investments and precocious measurement process technologies successful physics components, passive devices, connectors, PCB fabrication, physics superior goods, and upstream materials specified arsenic polysilicon and silicon wafers, which are indispensable gathering blocks of the electronics manufacturing ecosystem,” Ashok Chandak, president of the India Electronics and Semiconductor Association said.
Revival of superior flows, collaborations
Further, according to Atul Pandey, Partner astatine Khaitan & Co, the relaxation of rules for number information is of peculiar importance.
“While nationalist information concerns stay safeguarded done the support way for controlling investments, the relaxation for number information could assistance revive superior flows, peculiarly done planetary funds and strategical partnerships successful manufacturing and exertion sectors,” Mr. Pandey said.
Vaibhav Kakkar, Senior Partner astatine Saraf and Partners, pointed retired that the 60-day timeline besides provides clarity and certainty for associated ventures and collaborations successful India.
“For associated ventures wherever Chinese oregon different land-bordering state investors clasp immoderate nonstop involvement successful an Indian entity, the Government support way volition proceed to apply, albeit with a now-defined 60-day timeline if specified concern is successful specified manufacturing sectors, providing much-needed clarity and woody certainty for technology-driven collaborations,” Mr. Kakkar noted.
