March 11, New Delhi — The Indian government has approved changes in guidelines on investments from countries sharing a land border with India. The amendments to the FDI policy aim to attract greater FDI inflows from global funds for startups and deep tech, and to further the agenda of ease of doing business.
Previously, due to the COVID pandemic, the government had amended the existing FDI Policy in order to curb opportunistic takeovers and acquisitions of Indian companies due to the pandemic.
However, on Tuesday, the government gave its approval for changes in the FDI policy to provide a definitive timeline for investments in critical sectors.
Now, a decision within 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.
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 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.
Photo: Representative AI image
