Cabinet Approves Changes in FDI Policy for Countries Sharing Land Border with India

On 10th March 2026, the Union Cabinet approved change in guidelines on investments from countries sharing land border with India.

Background

Restrictions Introduced During COVID-19

  • The current regulatory framework governing investments from neighbouring countries was introduced through Press Note 3 (2020) during the COVID-19 pandemic.
  • It required prior government approval for investments from countries sharing a land border with India to prevent opportunistic takeovers of vulnerable Indian firms amid economic uncertainty.
  • However, the rule also unintentionally affected global private equity and venture capital funds with minor, non-controlling investors from neighbouring countries.

Major Changes Made

Definition of Beneficial ....

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