The Government of India (GOI) has decided to liberalize foreign direct investment (FDI) from countries sharing land borders with India, aiming to enhance the country's manufacturing capabilities. Under the new policy, citizens or entities from these countries can own up to 10% of a non-controlling stake in Indian companies, provided that control remains with Indian citizens. This shift addresses previous ambiguities in the FDI regime, which required government approval for investments from these countries, significantly impacting deal timelines. Additionally, the GOI plans to introduce a 60-day clearance window for FDI proposals in specific manufacturing sectors, such as electronic capital goods and components. These measures are expected to attract vital FDI into early-stage companies and improve India's production capacity, aligning with the government's broader strategy to bolster the electronics manufacturing sector through initiatives like the Production Linked Incentive (PLI) scheme. However, formal amendments to existing regulations are necessary for these changes to take effect.