A total of 29 foreign direct investment (FDI) projects worth ₹4,895.65 crore have been reported to the government under its revised framework, which allows companies with up to 10% Chinese ownership to invest through the automatic route, the Ministry of Commerce and Industry said on Friday.
In March 2026, the government amended Press Note 3 of 2020. Without specifically naming any country, the original framework required government approval for foreign direct investment (FDI) from countries sharing a land border with India. Among India’s neighbouring countries, China is the largest source of investment.
Under the March 2026 amendment, companies with up to 10% ownership by an entity based in a land-border country (LBC) can invest through the automatic route, without requiring prior government approval.
“A total of 29 FDI investments have been reported under the revised framework up to 20 August 2026, involving proposed FDI of ₹4,895.65 crore,” the Commerce Ministry said. The investments cover sectors including information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres and transport services.
The 29 proposals were made by entities based in Mauritius, the U.S., the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands, among other jurisdictions.
“The reform provides greater certainty to investors, reduces transaction times and further strengthens the ease of doing business in India,” the statement added. Before the amendment, foreign investors with beneficial ownership from LBCs of India were required to obtain prior government approval under Press Note 3, even when such LBC ownership was small.”
Published – August 21, 2026 07:07 pm IST
