Debasis Mohapatra
Bengaluru, 10 Mar 2026
In its bid to attract FDI (foreign direct investment) from China coupled with bridging the huge trade deficit with the country, India on Tuesday the FDI norms for neighbouring countries.
The central government said that 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 chain”.
“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,” the statement read.
In 2020, Indian government had tightened the FDI rules concerning China after clash between the two Asian neighbours.
Relaxation in FDI rules is likely to help FDI inflow into electronics manufacturing,
