Easing Of Press Note 3 FDI Restrictions

On March 10, 2026, the Government of India announced a significant recalibration of Foreign Direct Investment (FDI) policy governing investments from countries sharing a land border with India, namely, China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan (collectively, "LBC countries"). This policy revision substantially modifies the restrictive framework established under Press Note 3 of 2020 ("PN 3"), introducing a calibrated, risk-based approach that distinguishes between minority, non-controlling investments and strategic acquisitions. The amendments reflect India's strategic intent to facilitate capital flows in critical sectors while maintaining robust safeguards for national security.