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March 12, 2026 March 12, 2026 - Current affairs for all the Exams: Major Cabinet Decisions: FDI Policy Relaxed for Bordering Nations and Jal Jeevan Mission Extended to 2028

The Union Cabinet has approved pivotal amendments to India's FDI framework for land-bordering countries, extended the Jal Jeevan Mission until 2028 with an enhanced ₹8.69 lakh crore outlay, and cleared infrastructure projects worth thousands of crores, including international status for Madurai Airport.

In a series of landmark decisions on March 11, 2026, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved several strategic initiatives aimed at boosting infrastructure, securing energy needs, and streamlining foreign investments.

1. Overhaul of FDI Policy for Land-Bordering Countries (LBCs)

The Union Cabinet approved significant amendments to the Foreign Direct Investment (FDI) framework governing investments from countries that share a land border with India. Key highlights include:

  • Beneficial Ownership Criteria: A new definition for 'Beneficial Owner' (BO) has been incorporated, aligned with the Prevention of Money Laundering Rules, 2005.

  • Automatic Route: Investors with non-controlling LBC beneficial ownership of up to 10 percent are now permitted under the automatic route in specific sectors.

  • Expedited Timeline: The policy introduces a 60-day decision timeline for investment proposals to enhance the ease of doing business, particularly in electronic components and solar cells.

2. Extension of Jal Jeevan Mission (JJM 2.0)

The Cabinet has extended the Jal Jeevan Mission until 2028. The total financial outlay has been enhanced to a staggering ₹8.69 lakh crore. This extension aims to complete the remaining functional household tap connections and ensure the sustainability of water sources across rural India.

3. Infrastructure and Connectivity Boost

Several major infrastructure projects received the green light:

  • Madurai Airport: Officially declared an International Airport, which is expected to boost tourism and trade in southern Tamil Nadu.

  • Railway Multitracking: Approved projects worth ₹4,474 crore spanning West Bengal and Jharkhand, adding approximately 192 km to the Indian Railways network.

  • Roadways: A ₹3,631 crore road project for Haryana and Uttar Pradesh, and a ₹3,839 crore highway widening project in Madhya Pradesh were sanctioned.

4. Energy Security Amid West Asia Crisis

In response to the ongoing West Asia crisis, the Ministry of Petroleum and Natural Gas confirmed that India’s crude supply remains secure. India has welcomed the International Energy Agency’s (IEA) decision to release emergency oil stocks. Furthermore, Air India and Air India Express announced 58 special flights to the Gulf region on March 12 to assist Indian citizens and maintain connectivity.

5. Legal and Parliamentary Developments

The Supreme Court of India delivered a significant judgment stating that the withdrawal of life support must be handled with extreme care and must not be an "act of abandonment" by medical professionals. Meanwhile, in Parliament, a no-confidence motion against Lok Sabha Speaker Om Birla was defeated by a voice vote following a heated debate.

Note: These updates are crucial for candidates preparing for UPSC, Banking, and SSC exams, particularly regarding government schemes, economic policies, and international relations.

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