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The government has amended Press Note 3 under the FDI policy, allowing investors from countries sharing land borders with India to hold up to 10 per cent non controlling stakes via the automatic route
The revised guidelines should help improve the ease of doing business and attract FDI
Automatic-route investment applies only to global entities with up to 10% Chinese ownership; firms registered in China must still seek government approval
India plans an indigenous Virtual Asset Lab to detect unregistered offshore crypto platforms as regulators tighten oversight following FATF concerns over money-laundering risks
Automatic route allowed for stakes below 10%
Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector
Analysts said that companies involved in sectors like EV, EMS, auto ancillary, BESS, renewable energy, and specialty chemicals are expected to benefit most from the easing FDI rules
In February 2026, India began easing its restrictions on buying Chinese equipment
The Union Cabinet has reportedly eased FDI norms under Press Note 3, which requires prior government approval for investments from entities in countries sharing a land border with India
The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi
Anup Rau shared his views on FDI, insurance penetration, regulation, bancassurance, and the company's growth plans
Piyush Goyal says China-origin FDI is not banned and approvals will be sped up, as India considers a calibrated relaxation of Press Note 3 norms while advancing a broad FTA agenda
'Too soon to comment on US tariff twist, but India committed to forging more trade deals'
Net FDI remained in negative territory for the fourth consecutive month in December as repatriations rose sharply, even as gross inflows strengthened across key sectors and source countries
These proposals have flowed in under the 'Uttar Pradesh FDI/FCI, Fortune Global 500, and Fortune India 500 Company Investment Promotion Policy 2023', the government said
India's outward FDI stands at $3.42 billion in January 2026, easing from December levels, with equity, loans and guarantees showing mixed trends
Bank stocks rally on India-US trade deal, and hopes of the government raising FDI cap in PSBs to 49 per cent, and relaxing voting rights, believe analysts.
On hiking FDI in PSBs, DFS Secy M Nagaraju says govt is considering raising the FDI cap to 49% from 20% to boost capital; inter-ministerial consultations are underway
Manufacturers still have excess capacity to utilise, hindering new investments
Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infrastructure needs