India has received 29 foreign direct investment proposals worth around Rs 4,895.7 crore since May 2026, following the government’s easing of investment norms for countries sharing a land border with India, sources privy to the matter said.
The investments have been spread across several sectors, including information technology, artificial intelligence, manufacturing and pharmaceuticals. Data centres and transport services have also attracted foreign capital.
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Investors include entities based in the US, Japan and South Korea, besides investment structures based in Mauritius, Singapore and Luxembourg, the persons aware of the developments said.
The inflows follow changes to the FDI framework aimed at easing restrictions introduced under Press Note 3 of 2020.
The revised rules allow non-controlling minority investments of up to 10% from land-bordering countries through the automatic route, subject to specified conditions.The changes took effect in May 2026.
The government has also introduced an expedited approval mechanism for certain investments from land-bordering countries, with proposals in specified manufacturing sectors eligible for decisions within 60 days.
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These include capital goods, electronic components, polysilicon and ingot wafers, advanced battery components and rare-earth-related manufacturing.
Industry body IVCA has welcomed the changes, saying greater engagement between policymakers and industry is helping improve the ease of undertaking foreign investments.
“IVCA appreciates DPIIT’s receptiveness and responsiveness to industry suggestions on Press Note 2,” said Rajat Tandon, President, IVCA.
He said the measures were translating into tangible outcomes for investors and would help strengthen investor confidence and India’s ease-of-doing-business framework.
The government’s move marks a calibrated easing of the post-2020 FDI regime while retaining safeguards around control and beneficial ownership.
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