Did Press Note 3 relaxations help attract more FDI? | Explained
The Ministry of Commerce and Industry has said that a total of 29 FDI projects worth ₹4,895.65 crore had been reported to it under its revised framework up to August 10, 2026
The Indian government's Press Note 3, introduced in April 2020, aimed to relax Foreign Direct Investment (FDI) rules by including any country sharing a land border with India, such as Pakistan, China, Bangladesh, Nepal, and Bhutan. This decision was not directly linked to the Galwan clash between India and China in May 2020, but was a measure to prevent hostile takeovers of companies affected by the COVID-19 pandemic.
In March 2026, the government further eased the restrictions, allowing FDI from entities with less than 10% stake in border countries to enter India through the automatic route without government approval. As of August 10, 2026, a total of 29 FDI projects worth ₹4,895.65 crore have been reported under the revised framework, coming from countries like Mauritius, the U.S., the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands.
While the investment amount is relatively small in comparison to the total FDI India received in 2025-26, it signifies progress in attracting more investments.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
