Government Open to Expanding Sectors Eligible for Press Note 3 Eased Regime, DPIIT Secretary Indicates
Government Explores Easing of Foreign Investment Regime
The Department for Promotion of Industry and Internal Trade (DPIIT) is considering further relaxation of the foreign investment regime under Press Note 3. On March 11, DPIIT Secretary Amardeep Singh Bhatia indicated that the government may add more sectors to the list where investments from land-bordering countries (LBCs) can be processed faster.
The government is currently examining ways to expand the sectors eligible for expedited approvals for investments coming from LBCs, excluding Pakistan. This move is part of the amendments cleared by the Cabinet on March 10, which introduced an expedited approval process for investments from LBCs in select strategic manufacturing sectors. The 60-day timeline for decisions will remain in place for these sectors.
The broad sectors currently eligible for expedited approvals include:
- Capital goods
- Electronic capital goods
- Electronic components
- Polysilicon and wafer manufacturing
- Advanced battery components
- Rare earth permanent magnets and processing
Under the proposed framework, the Committee of Secretaries (CoS), headed by the Cabinet Secretary, will have the authority to revise and expand the list of specified sectors where such investments can be fast-tracked.
Investor Takeaway
Investors may benefit from potential easing of foreign investment regulations in select sectors.
More in Market
Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More
FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round
Global Markets: Key Indicators to Monitor in Today's Trading Session
