The Ministry of Commerce & Industry reported that 29 foreign direct investment (FDI) proposals worth ₹4,895.65 crore have been received under the revised FDI framework as of August 20, 2026. These investments span multiple sectors including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres, and Transport Services.
The investments have been reported by entities based in jurisdictions including Mauritius, the United States, 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 May 1, 2026, facilitates investment by removing the requirement of prior Government approval in cases involving non-controlling Land Bordering Countries (LBC) ownership of up to 10%.
The new framework applies the beneficial ownership test 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. Investors can proceed with investments without obtaining additional approval after reporting relevant information to the Government. This reform addresses long-standing investor concerns about clarity and ease of investment that existed under the previous Press Note 3 of 2020 framework, which required prior Government approval for any LBC ownership regardless of size.
The policy change aims to expedite foreign investment flow into India, provide greater certainty to investors, reduce transaction time, and strengthen the ease of doing business in the country.