Border Games: India Recalibrates Its FDI Framework

On March 10, 2026, the Union Cabinet, through a Press Release, approved an amendment to the foreign direct investment (the "FDI") policy concerning investments from countries sharing land borders with India (Land Bordering Countries or "LBCs").

The Union Cabinet sought to clarify key aspects of the Press Note 3 framework, including the approach to determining beneficial ownership and the introduction of a time-bound approval process (for a select few sectors, as of now). These clarifications are aimed at addressing practical uncertainties affecting global investment structures while preserving the national security safeguards underpinning the regime.

Pursuant to this, the Department for Promotion of Industry and Internal Trade (the "DPIIT") has now notified Press Note No. 2 (2026 Series) ("PN2") on March 15, 2026, amending the Consolidated FDI Policy, 2020 dated 15.10.2020 (the "FDI Policy").