Timely leg-up for manufacturing

The easing of Press Note 3 norms is expected to unlock a pipeline of pending proposals, potentially driving a near-term uptick in inflows from China (including Hong Kong). The change in the rule is expected to increase the share of Chinese funds in overall FDI to more than 2%, the level it stood at before the Press Note 3.

However, the real impact of the amendment will be visible over the medium to long term. We expect technology partnerships, collaborations and M&As accelerating, helping India move up the value chain across sectors and become a key player in the global value chain.