The Indian government is set to introduce a framework for expedited approvals of investments from companies with limited Chinese ownership in seven strategic sectors, including rare-earth magnets and electronic components.
The move aims to boost domestic capacity and attract more foreign direct investment (FDI), with gross FDI expected to reach $90 billion in FY26, officials said.
The revised FDI norms will allow for regulatory clearances within 60 days and are expected to clear around 600 pending investment applications.
The seven identified sectors are rare-earth permanent magnets, rare-earth processing, polysilicon and ingot-wafer, advanced battery components, electronic component manufacturing, capital goods manufacturing, and electronic capital goods.
Additional sectors or activities may be added later with approval from the competent authority, officials said.
All such investments will still require political and security clearances, the official added.
India attracted gross FDI of $88.29 billion in the April-February period of 2025-26, while net FDI during the same period stood at about $6.3 billion.
