India received 29 foreign direct investment (FDI) proposals under a revised framework that allows automatic ownership of up to a 10% stake for certain investments, the government said on Friday.
The proposed investments totalling ₹4,895.65 crore as of 20 August are in sectors such as information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres and transport services.
The proposals are from investors in jurisdictions including Mauritius, the US, Korea, Japan, Singapore, Luxembourg and the Cayman Islands, the commerce ministry said in a statement. The ministry did not identify the investors or name the origin country of the investments.
The revised framework removes the requirement of prior government approval for foreign investments in cases involving a stake of up to 10% from investors in countries that share a land border with India. This provides investors with greater certainty, reduces transaction time and strengthens the ease of doing business in India.
Following the notification of Press Note 2 of 2026 and the consequent amendment to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, on 1 May 2026, the beneficial ownership test is now applied at the level of the investor entity.
The investments are subject to applicable sectoral caps, entry routes and other conditions. The entity can invest without obtaining any other approval after reporting the relevant information to the government.
Earlier, such foreign investors had to obtain prior government approval under Press Note 3 of 2020, even when the stake was very small. This had been a longstanding concern among investors seeking greater clarity and ease of investment.
Press Note 3 of 2020 was introduced in April 2020 and required prior government approval for FDI from entities based in countries sharing a land border with India, as well as investments where the beneficial owner was situated in or was a citizen of such a country.
The revised framework is aimed at addressing concerns arising from the earlier regime, particularly in cases involving small, non-controlling beneficial ownership through investment structures involving third-country jurisdictions, while continuing to retain safeguards for investments involving control or ownership beyond the prescribed threshold.
An expert pointed to how it was not clear which of India's land border countries (LBCs) the latest FDI was from. "The real measure of the reform’s effectiveness is how much previously approval-constrained LBC-linked capital entered India because of this relaxation. This requires disclosure of beneficial ownership, control rights and ultimate source of capital, rather than merely the registered jurisdiction of the investing entity,” said Ram Singh, a professor at the Indian Institute of Foreign Trade.
The government in its statement said the latest figures indicate that the calibrated relaxation is facilitating foreign investment into India while providing greater certainty to investors and reducing the time involved in processing investments.
While easing the FDI norms, the government also said that any investment from countries sharing a land border with India in capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer sectors will continue to be considered on a case-by-case basis, but approval or otherwise will be given within 60 days.
Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.
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