A total of 29 foreign direct investment (FDI) proposals involving ₹4,895.65 crore have been reported under India’s revised investment framework as of August 20, 2026, spanning sectors including information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres and transport services.
The investments have been reported by investors and entities based in Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands, among other jurisdictions.
The revised framework seeks to facilitate and expedite foreign investment by removing the requirement for prior government approval in cases involving non-controlling ownership of up to 10 per cent from entities in Land Bordering Countries (LBCs).
The reform is aimed at providing greater certainty to investors, reducing transaction timelines and further improving the ease of doing business in India.
Under Press Note 2 of 2026 and the subsequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on May 1, 2026, the beneficial ownership test is applied at the level of the investor entity.
Under the revised provisions, investor entities with non-controlling LBC ownership of up to 10 per cent can invest through the automatic route, subject to applicable sectoral caps, entry routes and other conditions. Such entities can proceed with investments without obtaining any additional government approval after reporting the relevant information to the government.
Previously, foreign investors with beneficial ownership from India’s land-bordering countries were required to obtain prior government approval under Press Note 3 of 2020, even in cases where the extent of such ownership was minimal.
The requirement had been a long-standing concern for investors seeking greater clarity and ease in making investments in India.
