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. These investments span a range of sectors, including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres and Transport Services, among others.

The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

The revised framework facilitates and expedites the flow of foreign investment into India by removing the requirement of prior Government approval in cases involving non-controlling Land Bordering Countries (LBC) ownership of up to 10%. The reform provides greater certainty to investors, reduces transaction time and further strengthens the ease of doing business in India.

With Press Note 2 of 2026 and the consequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on 1 May 2026, the beneficial ownership test is now applied at the level of the investor entity. Investors with non-controlling LBC ownership of up to 10% can invest through the automatic route, subject to applicable sectoral caps, entry routes and other conditions. The investor entity can proceed with the investment without obtaining any other approval, after reporting the relevant information to the Government.

Earlier, foreign investors with beneficial ownership from LBCs of India were required to obtain prior Government approval under Press Note 3 of 2020, even where such LBC ownership was very small. This had been a long-standing concern among investors seeking greater clarity and ease of investment.

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Abhishek Dayal/ Garima Singh/ Ishita Biswas