India has witnessed a significant surge in foreign direct investment following the government's easing of investment norms for countries sharing a land border with India. Since May 2026, the country has received 29 foreign direct investment proposals worth around ₹4,896 crore across key sectors, as confirmed by the Ministry of Commerce and Industry in a press statement. The investments have been strategically distributed across information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres, and transport services, demonstrating strong international confidence in India's investment climate across multiple high-growth sectors. The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands, according to the latest government data.
The government's easing of FDI norms under Press Note 2 of 2026 has fundamentally changed India's investment landscape by allowing investment, without government approval, from entities having non-controlling land-bordering country (LBC) ownership of up to 10 per cent. Previously, investments from entities based in any other country having beneficial ownership of even 1 per cent by companies based in land-bordering countries were subject to government approval under Press Note 3 of 2020. The Union Cabinet approved the eased norms in March, and the Department for Promotion of Industry and Internal Trade (DPIIT) notified them in May to allow FDI through the automatic route. However, government approval would be required if an LBC company owns a controlling stake in the investment firm, providing regulatory clarity while maintaining oversight for strategic investments.
The proposal seeks to ease conditions for FDI in downstream companies, with a parent company that has obtained approval for foreign investment potentially not required to seek approval again for investments made through its subsidiaries. Additionally, the government is considering removing the requirement for Cabinet approval for certain FDI proposals above ₹5,000 crore. However, NDTV Profit reports that the government is now considering raising the threshold from ₹5,000 crore to ₹15,000 crore, with the current ₹5,000 crore threshold having remained unchanged since November 2015. Under this revised proposal, FDI investments of up to ₹15,000 crore could be cleared by concerned ministries without approval from the Cabinet Committee on Economic Affairs (CCEA).
The government may consider requests from company subsidiaries seeking relaxation of foreign-direct-investment norms at the 'relevant time', as part of efforts to simplify approvals and facilitate greater inflows of foreign capital, sources told NDTV Profit. The proposal is part of a broader set of changes under consideration to make India's FDI framework more investor-friendly and ease regulatory barriers for large foreign investments. Sources indicated that another proposal under consideration seeks to ease rules governing downstream investments, further streamlining the approval process for foreign investments in India.
