India: Government Policy & Public Finance

The Reserve Bank of India has proposed a comprehensive overhaul of India's foreign investment regulatory framework through the draft Foreign Exchange Management (Foreign Investment) Rules, 2026. This fundamental restructuring shifts from an investor-centric to an investee-centric classification system, introduces clarified definitions of foreign controlled entities, and eliminates differential compliance regimes that previously varied based on investor and investee characteristics.

India is positioning itself to reduce dependence on China for critical minerals through ambitious policy frameworks including the National Critical Minerals Mission and Rare Earth Permanent Magnets Scheme. This analysis examines how strategic India-Japan cooperation can build resilient supply chains across the Indo-Pacific region.

In 2014, the Government of India had announced the „Make in India‟ initiative to facilitate investment, foster innovation, enhance skill development, protect intellectual property and provide an impetus to the manufacturing sector in the country.