India is seeing a fresh wave of foreign investment after easing rules governing investments from countries that share a land border with the country. As many as 29 FDI proposals worth ₹4,895 crore ($511.5 million) have been received under the revised framework, signalling early investor interest in the more flexible approval mechanism.
The revised policy, introduced in May 2026, allows investors from land-bordering countries, including China, to make non-controlling investments of up to 10% through the automatic route, provided the investments comply with applicable sectoral caps and other regulatory requirements. This represents a notable change from the rules introduced in 2020, when investments linked to countries sharing a land border with India generally required prior government approval, even for relatively small stakes.
The new proposals are spread across several strategically important sectors, including information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services. The diversity of sectors indicates that the policy change is not limited to a single industry and could support capital flows into areas that are increasingly important to India’s digital and industrial growth.
According to the Commerce and Industry Ministry, the 29 proposals have been reported by investors or entities based in jurisdictions including Mauritius, the United States, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands. The development provides an early indication of how investors are responding to India’s calibrated relaxation of FDI restrictions while retaining limits on controlling ownership and other safeguards.
The inflow comes as India continues to position itself as an attractive destination for global capital, manufacturing, technology and infrastructure investment. While the revised framework offers greater flexibility to eligible investors, the government continues to retain regulatory checks through sector-specific limits and other conditions.
With $511.5 million in proposals already reported, the new FDI framework could become an important channel for attracting additional foreign capital into India’s technology, manufacturing and services ecosystem.
