The Indian government has introduced a series of policy changes aimed at fostering domestic joint ventures in critical sectors such as defense manufacturing, clean energy, semiconductors, and digital infrastructure. These sectors are vital to the country’s strategic and economic future, and the new policies are designed to encourage collaboration among Indian companies, enhance technological capabilities, and reduce reliance on imports. The changes focus on financial incentives, relaxed regulatory norms, and priority access to government procurement for eligible joint ventures.

One of the key features of the revised framework is the introduction of performance-linked incentives (PLIs) for Indian entities forming joint ventures within priority sectors. Additionally, companies involved in such collaborations will benefit from fast-tracked licensing, land allotment support, and easier access to capital and technology grants through public-private partnership models. To encourage broader participation, the government has simplified compliance processes under the Companies Act and introduced shared IP rights provisions to promote innovation without ownership conflicts.

These policy shifts are a part of India’s broader push for Atmanirbhar Bharat (self-reliant India), aiming to develop domestic capabilities and build national resilience in areas deemed strategically sensitive. Officials believe that empowering Indian firms to collaborate through joint ventures will create globally competitive ecosystems, stimulate job creation, and facilitate high-value production within the country. This initiative is expected to reshape India’s industrial landscape and reduce vulnerabilities in the global supply chain environment.