On March 10, 2026 the Indian government approved amendments to India’s FDI regime relating to investments from countries sharing a land border with India. These are Afghanistan, Bangladesh, Bhutan, China, Myanmar, Nepal and Pakistan. The changes represent a calibrated relaxation of the restrictions introduced in 2020 through Press Note 3, while retaining regulatory safeguards relating to ownership, control, and national security considerations. The revised framework aims to facilitate capital inflows, particularly in manufacturing and technology sectors, while continuing to monitor investments that may raise strategic concerns.
Background: PN 3 was introduced during COVID-19 to prevent opportunistic takeovers of Indian companies by investors from the aforesaid six countries. Any direct or indirect investment into India by an entity situated in or whose beneficial owner was situated in those countries required prior government approval. There was no defined threshold for
