Relaxed FDI rules for land bordering countries spur Rs 4,895 cr investment: DPIIT

India's Ministry of Commerce and Industry announced on Friday that relaxed foreign direct investment (FDI) rules for land bordering countries have attracted Rs 4,895.65 crore in proposed investment as of August 20, 2026. The government permitted foreign entities with non-controlling beneficial ownership from land bordering nations of up to 10% to invest in various sectors like IT, AI, manufacturing, pharmaceuticals, data centers, and transport services.

Thirty-nine FDI investments were reported under this revised framework till the end of August, involving sectors like information technology, artificial intelligence, manufacturing, pharmaceuticals, data centers, and transport services. These investments were made by entities based in jurisdictions such as Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands.

Previously, foreign investors with land bordering country ownership had to obtain prior government approval. The revised norms ensure majority shareholding and control of the investee entity with resident Indian citizens or entities. The government lifted restrictions on investments from China in April 2020 to prevent opportunistic takeovers during the Covid-19 pandemic.