A CHANGE in Indian government policy has led to stronger emphasis on promotion, aimed at attracting overseas companies to invest in India. The cost of labour and land is much lower than in Hongkong, leading to cheaper production costs. Much of the past investment has therefore been in manufacturing. Two popular fields are electronics and textiles. Several Hongkong companies have signed joint venture agreements to produce video and audio cassette tapes. Cordless telephones, fax cards, telephone recording and answering machines, and micro diskettes are among other technical products for which Hongkong companies have found an Indian partner. Woollen and cotton sweaters are also produced by joint venture firms. Much of the investment is financial, but Cheng Hsong Machinery has provided technology for the manufacture of plastic moulding machines, and Century Industries has transferred technology for gear box assembly. However, Mr Deepak Ray, the Acting Commissioner at the Commission for India, said he was trying to promote investment in fields other than manufacturing. ''Some Hongkong Indians have invested in traditional agriculture, such as farming non-edible oil plants,'' he said. ''Also, Hongkong is strong in fund management, and I am trying to interest institutional investors in the dozen or so Indian stock markets.'' Two local hotel groups, Mandarin Oriental International and New World, are both investing in hotels and resorts, to take advantage of India's growing tourism industry. Mr Ray said even before the present government took office in 1991, the economy had been going through a period of reform. ''Particular measures include the removing of controls on industry, which have made investment easier. Foreigners can now own a majority share in a company, and investment approvals can be given quickly. ''Licensing requirements have also been reduced.'' Mr Ray said several fiscal measures were also being carried out. The Foreign Exchange Regulation Act has been relaxed in stages since July, 1991. Import tariffs have been reduced, the taxation structure - both corporate and personal - has been improved, and other changes are planned. Of particular interest to investors is the convertibility of the Indian currency. It is now partly convertible, and there are plans to make it fully convertible. These measures have all been taken to strengthen the Indian economy and to help attract investors. Mr Ray said that with the attractive and profitable opportunities now available, he hoped to see more Hongkong investments in India.