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The government is considering easing paperwork requirements under Press Note 2 to facilitate foreign investments, particularly for companies with less than 10 per cent Chinese ownership, sources told ANI.
The proposed move aims to simplify application forms and reduce procedural requirements for companies with minority Chinese shareholding, making it easier for such entities to invest in India. The development follows the government's earlier revision of foreign direct investment (FDI) rules governing investments from countries sharing land borders with India. In March 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Press Note 2, revising the framework introduced under Press Note 3 of 2020. Under the revised framework, investments involving entities or beneficial owners from countries sharing land borders with India remain subject to government approval where applicable. The policy also introduced provisions defining beneficial ownership and reporting requirements for investments involving direct or indirect ownership from land-bordering countries, even where prior government approval is not required. Meanwhile, under the government's import substitution mission, DPIIT has finalised a list of 100 priority products to strengthen domestic manufacturing and reduce dependence on imports, sources said. Consultations with concerned ministries and other stakeholders are currently underway to formalise the next steps for domestic production and manufacturing of these identified products. In another development aimed at strengthening startup financing, the government has finalised 15 Alternative Investment Funds (AIFs) under Fund of Funds 2.0. Sources said an amount of Rs 270 crore has been earmarked for the Small Industries Development Bank of India (SIDBI) for investments under the initiative. The move is aimed at improving access to capital for startups and supporting the growth of India's entrepreneurial ecosystem. Additionally, DPIIT is planning a complete overhaul of the BHASKAR platform, envisioned as a Startup Knowledge Registry to strengthen connectivity and information-sharing across the startup ecosystem. According to sources, the revamped platform is expected to be rolled out in the first half of 2027. The proposed initiatives reflect the government's efforts to simplify investment procedures, encourage domestic manufacturing, strengthen startup financing and improve digital infrastructure for entrepreneurs. (ANI)
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