The Ministry of Commerce & Industry reported that 29 Foreign Direct Investment (FDI) proposals worth ₹4,895.65 crore have been received under the revised investment framework as of 20 August 2026. These investments span multiple sectors including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres, and Transport Services.
The investments originate from investor entities based in multiple jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands. The revised framework, implemented through Press Note 2 of 2026 and the consequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 notified on 1 May 2026, represents a significant regulatory reform.
The key change eliminates the requirement for prior Government approval in cases involving non-controlling Land Bordering Countries (LBC) ownership of up to 10%. The beneficial ownership test is now applied at the level of the investor entity, allowing investors with non-controlling LBC ownership of up to 10% to invest through the automatic route, subject to applicable sectoral caps, entry routes, and other conditions. This reform addresses long-standing investor concerns by providing greater certainty, reducing transaction time, and strengthening ease of doing business in India, while maintaining the requirement to report relevant information to the Government.