India Receives 29 FDI Proposals Worth Rs 4,895 Crore After Policy Easing

India has received 29 foreign direct investment proposals worth Rs 4,895.65 crore as of August 20, 2026, following a government policy change that eased rules for investments involving beneficial ownership from land-bordering countries, the Ministry of Commerce and Industry announced on Friday. The proposals, spanning sectors from information technology to pharmaceuticals, represent the first major wave of reported interest under the revised framework.

The influx stems from a significant amendment to the foreign direct investment policy notified on May 1, 2026. This change modified the stringent rules established in 2020 under Press Note 3, which had required mandatory prior government approval for any foreign investment from a country sharing a land border with India, even if the ownership stake was minimal. The 2020 rule was primarily aimed at preventing opportunistic takeovers during the pandemic and remained in place amid national security concerns.

Under the new rules, foreign entities with a non-controlling beneficial ownership of up to 10% from a land-bordering country can now invest through the automatic route without requiring prior approval, provided they comply with...