India's Revised FDI Policy Attracts Over ₹4,800 Crore Investment, Easing Rules for Minor Land Bordering Country Ownership

India has seen a significant boost in foreign direct investment (FDI) following the implementation of a revised policy framework earlier this year. The Ministry of Commerce and Industry recently announced that 29 FDI proposals, amounting to ₹4,895.65 crore (approximately $590 million), have been reported under the new framework up to August 20, 2026. These investments span various critical sectors including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres, and Transport Services.

The core of the revised framework, detailed in Press Note 2 of 2026 and subsequent amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on May 1, 2026, is the removal of the requirement for prior government approval in cases where the non-controlling beneficial ownership from land-bordering countries (LBCs) is up to 10%. Previously, under Press Note 3 of 2020, even a minimal beneficial ownership from LBCs necessitated government approval, which had been a persistent concern among foreign investors seeking clarity and ease of investment.

This policy shift aims to provide greater certainty to investors, significantly reduce transaction times, and further strengthen the overall ease of doing business in India. The beneficial ownership test is now applied at the level of the investor entity, allowing eligible investors to proceed through the automatic route, subject to applicable sectoral caps and conditions, without requiring additional government approval after reporting relevant information. The 29 reported investments originated from jurisdictions such as Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands, demonstrating broader investor confidence in India's economic environment.