NEW DELHI: The government has identified seven critical sectors/manufacturing activities for faster approval of investments from China, a senior official told TNIE.
These are capital goods, electronic capital goods, electronic components, polysilicon and ingot wafer, advanced battery components, rare earth permanent magnets, and rare earth processing.
Capital goods include plant machinery, heavy equipment or accessories required for manufacturing. Electronic capital goods mean equipment and machinery used for manufacturing lithium-ion battery, mobile phones etc.
Electronic components include display module, camera module, printed circuit board, enclosures for mobile phones, etc. Polysilicon is the primary raw material used to produce silicon wafers. This is melted in a crucible to produce an ingot, which is a solid cylindrical or block-shaped mass of crystalline silicon.
More sectors could be added to this list, a document reviewed by this daily showed.
Under the amended Press Note 3 (PN3) framework, the Cabinet has introduced an expedited approval mechanism to clear investment proposals from countries sharing a land border with India (land-bordering countries or LBCs) in specified manufacturing sectors within 60 days.
These are referred to as LBC investments. In March this year, the government eased restrictions on investments from neighbouring countries, including China, to encourage inflows into critical sectors.
The restrictions were originally introduced in 2020, at the peak of tensions between India and China.
600 proposals await govt approval
After India put FDI curbs through Press Note 3 in April 2020, investments from China dropped. According to DPIIT, nearly 600 investment proposals from China are awaiting approval. The amended PN3 is expected to clear the backlog and open up the investment flow into India
Investments to be cleared with caution
Officials said while India is open to investments from all countries, including China, it will proceed with caution. “We are keeping our eyes wide open. Safety and security are paramount. The government is willing to facilitate investments, but only with due diligence,” said an official