New Delhi, India: India has received reports of 29 foreign direct investment (FDI) proposals involving ₹4,895.65 crore under a revised framework that allows certain investments involving non-controlling beneficial ownership from countries sharing a land border with India to proceed through the automatic route.

The investments, reported up to August 20, 2026, cover sectors including information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres and transport services. Investors and entities involved are based in jurisdictions including Mauritius, the United States, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

The revised framework removes the requirement for prior government approval where ownership from a land-bordering country is non-controlling and does not exceed 10%. The change is intended to provide greater clarity to investors and reduce the time involved in completing transactions.

The change follows Press Note 2 of 2026 and the subsequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, which was notified on May 1, 2026.

Under the revised rules, the beneficial ownership assessment is carried out at the level of the investor entity. Where an investor entity has non-controlling beneficial ownership of up to 10% from a land-bordering country, it can make an investment through the automatic route, subject to applicable sectoral caps, entry routes and other conditions. The investment can proceed after the relevant information is reported to the government, without seeking separate approval.

The revised approach marks a change from the earlier framework under Press Note 3 of 2020. Previously, foreign investors with even a small amount of beneficial ownership originating from a land-bordering country were required to obtain prior government approval.

The government said the earlier requirement had been a concern for investors seeking greater certainty around the approval process. The revised framework is intended to facilitate and expedite foreign investment while maintaining the applicable sectoral and regulatory conditions.

The reported investments span both technology-focused and traditional sectors, including AI, manufacturing, pharmaceuticals, data centres and transport services.

Source: This article is based on an official press release issued by the Press Information Bureau, Ministry of Commerce & Industry, Government of India
Press Release: Press Information Bureau