India Attracts ₹4,896 Crore FDI In 29 Projects After Easing Land-Border Investment Rules

India has attracted ₹4,896 crore in foreign direct investment (FDI) through 29 projects since the government relaxed investment rules in May, signalling an early response to measures aimed at making the country more attractive to overseas investors.

The investments were reported by entities based in countries including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

The projects cover sectors such as information technology, artificial intelligence, communications, manufacturing, pharmaceuticals, data centres and transport services.

The inflows followed changes introduced under Press Note 2 of 2026. The revised framework permits investments through the automatic route where an entity based outside India's land-bordering countries has non-controlling ownership of up to 10% by companies from those countries.

Previously, even a 1% beneficial ownership by a company from a land-bordering country could trigger the government-approval requirement under Press Note 3 of 2020.

The government had introduced tighter rules in 2020, requiring approval for investments originating from countries sharing a land border with India, as well as investments from other jurisdictions with ownership links to such countries.

Govt Targets Faster Investment Approvals

The eased framework was cleared by the Union Cabinet in March and notified by the Department for Promotion of Industry and Internal Trade in May. Investments where a land-bordering-country company has a controlling interest will continue to require government approval.

Direct investments from entities based in China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan also remain subject to government scrutiny. However, the government has introduced a 60-day approval timeline for investments in select sectors to speed up decision-making.

The reforms are part of a broader attempt to revive foreign investment into India. The government has also relaxed FDI rules for inventory-based ecommerce and is working on a revised model Bilateral Investment Treaty.

The push comes as India's net FDI inflows have weakened sharply, falling to $6.95 billion in FY26 from an annual average of about $40 billion between FY20 and FY22.