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Informist, Wednesday, Mar. 11, 2026

 

--Govt: Rare earths included under relaxed FDI norms for bordering nations 
--Govt: To soon list sectors under relaxed FDI norms for bordering nations 
--Industry secy: Expect FDI to rise post easing of norms for bordering nations 
--CONTEXT: Industry secy briefing on easing of FDI norm for bordering nations

 

NEW DELHI – Rare earth magnet is among the various sectors in which the government will approve foreign direct investment requests from entities based in nations that share a land border with India in 60 days, Department for Promotion of Industry and International Trade Secretary Amardeep Singh Bhatia said Wednesday. The government will soon issue a detailed list of other eligible sectors, Bhatia added.

 

Bhatia's comments pertain to the government's decision to ease FDI norms for countries that share land borders with India. In 2020, India had mandated government approval for all investments from entities based in land border countries, as well as entities based out of any other country--that had ownership by companies based in land border countries. As per the eased norms, entities--based in any other country with beneficial ownership of less than 10% by companies based in land border countries--can invest in India through the automatic route.

 

Entities based in land border countries can also propose to the government to invest in select sectors, and the government will take a call on such proposals within 60 days. 

 

The government will soon set up a mechanism to review the FDI proposal for clearance within 60 days, Bhatia said. Such FDI proposals can be for ownership of up to 49%, Bhatia added. Sectors related to capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer are eligible for 60-day FDI proposal processing.

 

The secretary expects strong FDI interest in India once the new norms kick in. He said the norms would kick in soon without giving a timeline. The government eased the norms after consultation with several private equity and venture capital funds.  End

 

Reported by Krity Ambey

Edited by Avishek Dutta

 

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