New Delhi, March 16 -- The Department for Promotion of Industry and Internal Trade (DPIIT) has eased foreign direct investment (FDI) norms for investors from countries sharing land borders with India while tightening oversight of ownership structures.
Under Press Note 2 (2026) issued on March 15, investors from neighbouring countries can now acquire up to 10 per cent non-controlling stakes in Indian companies through the automatic route, subject to sectoral caps and conditions. However, companies receiving such investments must report details to DPIIT.
Changes to Earlier FDI Restrictions
The move modifies provisions under Press Note 3 (2020), which required all investments from land-border countries to seek prior government approval. ...