New Delhi [India], 21 August (ANI): Twenty-nine foreign direct investment (FDI) proposals involving a combined investment of Rs 5,000 crore have been reported under India’s revised framework for investments from entities with ownership linked to Land Bordering Countries (LBCs), the Department for Promotion of Industry and Internal Trade (DPIIT) said on Friday.
The investments, reported up to August 20 this year, span sectors including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres and Transport Services, officials said.
Earlier, under Press Note 3 of 2020, foreign investors with any beneficial ownership from LBCs required prior government approval, even in cases where the LBC-linked stake was minimal. This had long been flagged by investors as a source of delay and uncertainty in an otherwise liberalised FDI regime.
That changed with Press Note 2 of 2026 and the corresponding amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on May 1, 2026. Under the revised norms, the beneficial ownership test is now applied at the level of the investor entity, and investors with non-controlling LBC ownership of up to 10 per cent can invest through the automatic route, subject to applicable sectoral caps, entry routes and other conditions.
Speaking on the development, Jai Prakash Shivhare, Joint Secretary, DPIIT, said, “The revised framework reflects our commitment to making India’s FDI policy both robust and investor-friendly. By calibrating scrutiny to actual ownership and control rather than treating every LBC linkage alike, we have removed an unnecessary layer of delay while retaining the safeguards that matter. The response so far 29 investments worth Rs 5,000 crore across sectors as critical as AI, data centres and manufacturing shows that investors have welcomed this clarity.”
Shivhare added that the reform underscores the government’s continued push to improve ease of doing business.
“An investor entity can now proceed under the automatic route simply by reporting the relevant information to the government, without waiting for prior approval. This reduces transaction time significantly and gives investors far greater certainty in their planning,” he said.
According to DPIIT, the 29 reported investments have come from investors and entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands, reflecting a diverse and geographically broad-based investor interest in the revised route.
Industry stakeholders have also welcomed the move. Rajat Tandon, President, Indian Venture and Alternate Capital Association (IVCA), said, “IVCA appreciates DPIIT’s receptiveness and responsiveness to industry suggestions on Press Note 2. This engagement is translating into tangible outcomes, with investors experiencing greater ease in undertaking foreign investments. Further steps being taken will make the framework more efficient, strengthen investor confidence and reinforce India’s commitment to ease of doing business. (ANI)
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