New Delhi, March 11 -- After years of tight restrictions, India is cautiously reopening the door to foreign investments from neighbouring countries, especially China.

At a cabinet meeting chaired by Prime Minister Narendra Modi, the government decided to relax the Press Note 3 rules introduced during the pandemic. Under the revised framework, investors from countries sharing a land border with India can now invest up to 10% in Indian companies without undergoing detailed security screening, provided they do not seek management control or board representation.

Why the shift now? The PN3 regime had effectively stalled several deals, leaving sectors like manufacturing, technology and startups short of capital. Policymakers appear keen to r...