India: Inward/ Foreign Investment

India has become one of the most attractive destinations for international companies seeking long term growth and regional expansion. As global markets evolve, businesses are increasingly focusing...

India’s foreign direct investment regime has undergone a noticeable shift over the last few years, shaped both by global economic conditions and domestic policy priorities. While India has continued to attract steady foreign capital, particularly into manufacturing and technology-linked sectors, it has also tightened its regulatory lens in areas involving ownership and control.

Events in April 2026 underscored a defining feature of India’s economic trajectory: resilience in the face of external volatility, coupled with an increasingly execution-oriented domestic policy framework.

The Indian government recently approved a significant amendment to the country’s Foreign Direct Investment (FDI) framework, specifically targeting investments in which the ultimate beneficial ownership traces back to countries sharing a land border with India (LBCs). The formal implementing notification was issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in Press Note 2 (2026 Series) on March 15, 2026 (PN2), amending the extant FDI Policy.

India has emerged as one of the most dynamic and promising markets in the global economy. In recent years, India attracts global businesses at an unprecedented pace, driven by economic growth, regulatory reforms...

The Union Cabinet has approved a significant relaxation of Foreign Direct Investment (FDI) norms for investments from countries sharing land borders with India, marking a potential shift from the stringent framework introduced under Press Note 3 (2020 Series). This policy change aims to balance national security considerations with investment facilitation and economic engagement, potentially improving investor sentiment while maintaining regulatory oversight for strategic interests.

The Union Cabinet, by press release dated 10.03.2026 (“Press Release”), has notified changes to the foreign direct investment (“FDI”) policy. The changes focus on change in guidelines introduced...

On March 10, 2026, the Government of India announced a significant recalibration of Foreign Direct Investment (FDI) policy governing investments from countries sharing a land border with India, namely, China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan (collectively, "LBC countries").

In April 2020, amid concerns regarding opportunistic acquisitions during the COVID-19 pandemic, the Department for Promotion of Industry and Internal Trade ("DPIIT"), Government of India, issued Press Note 3 (2020 Series) ("PN3 2020"). PN3 2020 fundamentally altered India's foreign direct investment ("FDI") framework by requiring government approval for investments originating from countries sharing land border with India.