The government is considering a proposal to raise the threshold for foreign direct investment proposals requiring approval from the Cabinet Committee on Economic Affairs (CCEA) to ₹15,000 crore from ₹5,000 crore at present. According to sources cited by PTI and The Times of India, this move aims to further improve the country's investment climate and is part of a broader review of FDI rules as the government seeks to attract larger overseas investments and simplify the approval process. The existing limit has remained unchanged since November 2015, prompting the current review based on prevailing economic conditions, inflation, and the growing scale of investments over the years. Sources indicate that the proposal is currently at a discussion stage, with the government considering upward revision of the CCEA approval limit for FDI proposals requiring the government approval route.
Under the existing foreign direct investment policy, proposals involving total foreign equity inflow of more than ₹5,000 crore require CCEA approval. As reported by PTI and The Times of India, proposals below that threshold are decided by the respective line ministries. The CCEA is a high-level Cabinet panel headed by Prime Minister Narendra Modi, with members including key ministers such as the Home Minister and Finance Minister. A committee of secretaries has also suggested an upward revision of the CCEA approval limit for FDI proposals requiring the government approval route, with the proposal currently under discussion.
The government is considering changes to rules governing downstream or indirect foreign investment in Indian companies to facilitate overseas capital inflows and job creation. Under the proposed changes, an Indian company receiving indirect foreign investment may not need to seek fresh government approval if the domestic company higher up in the ownership chain has already obtained the required approval. Currently, prior government approval is required for downstream or indirect foreign investment in two broad situations -- investments in sectors where FDI is under the government approval route, and investments involving entities from countries that share a land border with India. The proposed changes could reduce the need for repeated approvals in cases where the relevant investment has already been cleared at an earlier stage of the ownership structure.
The government has taken several measures in recent years to attract foreign capital and liberalise FDI rules. According to figures cited by PTI, cumulative FDI inflows into India crossed ₹1.16 trillion between April 2000 and March 2026. The leading sources of FDI include Mauritius, Singapore, the US, the Netherlands, Japan, the UK and the UAE, along with other major investor countries. The proposed changes to the CCEA threshold and downstream investment rules are part of the government's broader effort to facilitate investment while retaining government scrutiny in sensitive sectors and investments covered by the approval route.
