Background

Earlier this week, as a part of a broader set of key decisions, the Union Cabinet announced modification to India’s foreign investment regulatory framework on cross-border investments originating from countries sharing land borders with India (“LBC”). The changes announced are significant as they indicate a recalibration of the Government’s approach to certain categories of investments in India by LBC investors. The move is aimed at encouraging increased foreign capital flows in strategic industry sectors (with an emphasis on manufacturing capital goods, electronic capital goods, electronic components polysilicon and ingot-wafer (“Focus Sectors”)). They also clarify the applicability of the Government approval route to certain LBC investors, and the reducing regulatory approval timelines for such investments.Continue Reading From Restriction to Recalibration – The Path Forward for Press Note 3 and Cross-Border M&A