The Indian government is preparing to implement a framework for time-bound approvals of foreign direct investments (FDI) in seven crucial sectors, including rare-earth permanent magnets and electronic components. This initiative follows the easing of restrictions on investments from companies with limited Chinese ownership, allowing automatic approval for those with up to 10% beneficial ownership from countries sharing a land border with India. The Cabinet's decision, made on March 10, aims to boost domestic capacity and is projected to bring in $90 billion in gross FDI by FY26. The Department for Promotion of Industry and Internal Trade (DPIIT) has indicated that the new norms will help clear approximately 600 pending investment applications. Regulatory clearances for eligible applicants will be processed within 60 days. However, investments will still require political and security clearances, and the automatic route will not apply to companies incorporated in China or other neighboring countries like Pakistan and Bangladesh. DPIIT officials emphasized that India's strong economic fundamentals continue to attract global investors, with gross FDI reaching $88.29 billion in the April-February period of 2025-26, compared to $80.65 billion in the previous fiscal year.