The government has identified 40 sub-sectors, including rare earth magnets and printed circuit boards, for expedited clearance of foreign direct investment (FDI) proposals from countries sharing land borders with India, PTI reported.Under the revised framework, proposals from countries such as China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan in these sectors will be processed within 60 days, as per the updated standard operating procedure (SOP).The move follows a decision taken in March to fast-track FDI approvals in specified manufacturing sectors from these countries.However, the government has clarified that majority ownership and control of the investee entity must remain with resident Indian citizens or Indian-owned entities at all times.The 40 identified sub-sectors fall under six broad categories –capital goods manufacturing, electronic capital goods and electronic components, polysilicon and ingot-wafer production, advanced battery components, rare earth permanent magnets, and rare earth processing.These include manufacturing of insulation items, castings and forgings for thermal, hydro and nuclear power plants, machine tools, display components such as LCD and LED panels, camera modules, electronic capacitors, speakers and microphones, lithium-ion batteries, wearables, and rare earth metal and magnet processing facilities.The SOP also introduces detailed reporting norms for investments involving entities with direct or indirect ownership from land-bordering countries.“The reporting under these guidelines will be governed under the Foreign Exchange Management (Mode of Payment and Reporting of Non-debt Instruments) Regulations, 2019, and the information will be accessible by the Reserve Bank of India (RBI),” the DPIIT said.The responsibility for reporting lies with the Indian investee company, which must submit required details to the DPIIT before receiving foreign capital.“The reporting is to be made prior to the inward remittance of foreign capital. In cases which do not involve foreign capital inward remittances, the reporting is to be made prior to execution of the relevant transactions, including issuance/transfer of capital instruments, as the case may be,” it added.Investors will be required to disclose details such as shareholding patterns, beneficial ownership, organisational structure, promoters, board composition, key managerial personnel and control rights.The Indian entity will also need to provide incorporation details and disclose existing or proposed shareholding linked to entities from land-bordering countries.

Amid the ongoing Middle East conflict, a recent report by Moody’s Ratings says that recent global shocks have shown India’s resilience among emerging economies to withstand pressures. The report credits the resilience to timely policy measures and the buildup of robust buffers.“India and Thailand are the sovereigns better placed to manage future global shocks. In both cases, the key policy choices that support stability were made well before the recent stress period,” Moody’s says.In its latest study on emerging-market sovereigns, the agency notes that India has ranked among the more resilient economies since 2020, based on multiple indicators such as sovereign bond spreads, domestic yield movements, and exchange-rate stability.The report highlights the following points of strength:Monetary policy frameworks are clear and predictable, inflation expectations are better anchored, and exchange rates are allowed to adjust when needed. This reduces the risk that currency moves turn into persistent inflation or force abrupt policy shifts.

Both countries should also enter future periods of stress with strong and accessible buffers. India’s reliance on domestic funding is balanced by deep local markets and sizeable reserves, the report says.However it notes that India’s relatively high debt burden and weak fiscal balance limit the amount of space available to respond to successive shocks, while Thailand’s rising debt burden risks reducing resilience over time.The report points out that India has consistently demonstrated notable strength during periods of global volatility. Movements in credit spreads have been limited and short-lived, currency depreciation has remained controlled, and fluctuations in local bond yields have been orderly. These factors have helped the country retain uninterrupted access to financial markets even during turbulent phases.

It underscores the role of India’s sizeable foreign-exchange reserves, which have helped stabilise the currency and maintain investor confidence during episodes of global stress, setting it apart from more vulnerable peers.Another key factor has been the presence of a transparent and consistent monetary policy framework. The adoption of inflation targeting well before recent global disruptions has ensured that inflation expectations remain anchored, thereby improving the economy’s ability to absorb external shocks.When compared with relatively more fragile economies such as Türkiye, Argentina and Nigeria, India has largely managed shocks through adjustments in prices rather than prolonged financing stress. This has been supported by deeper domestic financial markets and stronger policy credibility.