29 FDI investments worth ₹4,895.65 crore reported under eased land-border rules
The Commerce Ministry said on 21 August 2026 that 29 FDI investments worth ₹4,895.65 crore have been reported under the revised framework for investors with small, non-controlling ownership from land-bordering countries.
Summary
The Ministry of Commerce and Industry said on 21 August 2026 that 29 FDI investments, with proposed FDI of ₹4,895.65 crore, had been reported under the revised framework up to 20 August 2026. The investments span IT, AI, manufacturing, pharmaceuticals, data centres and transport, from investors in jurisdictions including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands. Under Press Note 2 of 2026 and amended non-debt instrument rules notified on 1 May 2026, investors with non-controlling beneficial ownership of up to 10% from land-bordering countries can now invest through the automatic route after reporting to the government. Earlier, Press Note 3 of 2020 required prior government approval even for very small such ownership.
Key facts
- Reported
- 29 investments, ₹4,895.65 crore (to 20 Aug 2026)
- Rule change
- Press Note 2 of 2026; notified 1 May 2026
- Relief
- Non-controlling LBC ownership up to 10%: automatic route
- Condition
- Report to government; sectoral caps apply
- Earlier rule
- Press Note 3 of 2020: prior approval needed
Practice MCQs 3 questions
How many FDI investments had been reported under the revised land-bordering-country framework up to 20 August 2026?
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Correct answer: D — 29
29 FDI investments with proposed FDI of ₹4,895.65 crore had been reported up to 20 August 2026.
Under the revised FDI framework of 2026, investors with non-controlling beneficial ownership from land-bordering countries up to what level can use the automatic route?
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Correct answer: B — 10%
Non-controlling LBC beneficial ownership of up to 10% can now come through the automatic route, subject to sectoral caps and reporting.
Consider the following statements about the revised FDI framework for land-bordering-country ownership: 1. It was introduced through Press Note 2 of 2026. 2. Investors using it no longer need to report any information to the government. Which of the above is/are correct?
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Correct answer: A — 1 only
Only statement 1 is correct. The investor entity may proceed without other approvals only after reporting the relevant information to the government.