India Eases FDI Norms for Border Nations, Boosts Electronics JVs with China

• Union Cabinet relaxed FDI rules for companies from countries sharing land borders, amending Press Note 3 of 2020.
• The move aims to unlock fresh investments and facilitate joint ventures, especially with Chinese firms, in electronics components and capital goods.
• Investments with up to 10% non-controlling beneficial ownership from these countries will now be allowed via the automatic route.
• Fast-track approvals within 60 days are introduced for select manufacturing sectors, ensuring majority Indian ownership and control.
• This policy shift is expected to accelerate domestic manufacturing, reduce import dependence, and integrate India into global electronics supply chains.