New Delhi, April 19 -- On 10th March, 2026 the Union Cabinet of India approved a proposal to bring significant changes to its Foreign Direct Investment (FDI) policy. These changes included the introduction of new guidelines on investments from Land Border Countries (LBC). These guidelines focus on allowing countries that share borders with India to invest in Indian companies across both critical and non-critical sectors, aiming to unlock greater FDI inflows from global funds for startups and deep tech companies. This marks a significant departure from the restrictive stance which India adopted during the COVID-19 pandemic to curb opportunistic takeover and acquisition of Indian companies.

Under the revised framework, a more differentiate...