India: Inward/ Foreign Investment

The Government of India has approved relaxations to the foreign direct investment ("FDI") regime applicable to investments from countries sharing a land border with India.

In 2020 in order to curb “opportunistic takeovers/acquisitions of Indian companies” due to the COVID-19 pandemic, the Indian Government through Press Note No. 3 (2020 Series) required an entity of a country which shared land border with India or where the beneficial owner …

On 10 March 2026, the Union Cabinet approved amendments to India's foreign direct investment (‘FDI') policy governing investments originating from countries that share a land border with India...

In a welcome move, the Government of India has approved amendments to the extant Foreign Direct Investment policy (“Policy”) aimed at easing investments from land border sharing countries (“LBC”).

On 10 March 2026, the Government of India issued a press release (Press Release) indicating that Union Cabinet (Cabinet) has approved amendments to the foreign direct investment (FDI) regime in India with respect to for investments into India with beneficial ownership originating from countries sharing land borders with India (LBCs) under a regulation known as "Press Note 3" (PN3).

Press Note 3 (2020 Series) ("PN3"), issued by the Department for Promotion of Industry and Internal Trade ("DPIIT") on 17 April 2020, was introduced in response to the economic disruption caused by the COVID-19 pandemic.

Late last year, the Indian government released a draft of the proposed Arbitration and Conciliation (Amendment) Bill, 2024 (the "Draft Amendment Bill").

The MoF by way of Notification No. G.S.R. 928(E) dated 30.12.2025 notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025 ("Amendment Rules") to amend the Indian Insurance Companies (Foreign Investment) Rules, 2015 ("Principal Rules").

On June 11, 2025, the Department of Economic Affairs, Ministry of Finance, Government of India issued Notification S.O. 2549(E) ("2025 Notification") amending Rule 7 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (the "NDI Rules").