Until now, investment involving China or other bordering countries needed approval across the board. Since the March 2026 amendment, up to 10% non-controlling beneficial ownership goes through the automatic route, and designated manufacturing sectors get a 60-day review.
The automatic route needs no prior approval; the government route is approved through the Foreign Investment Facilitation Portal (FIFP). Lottery and gambling, chit funds, tobacco manufacturing and real estate (excluding commercial infrastructure) are among the prohibited sectors.
Single-brand retail was 100% automatic, multi-brand 51% with government approval, and e-commerce allowed only the marketplace model, not inventory. Where foreign ownership in single-brand exceeded 51%, 30% of sourcing had to be from India.
Samil PwC notes that culture, administration and incentive structures differ greatly by state, so a Korean headquarters' strategy is hard to apply as-is, and consumer industries need time for localisation, distribution and brand building.
Herald Business reported that India has 28 states and 8 union territories with 22 official languages, that over 80% of Korean firms enter alone while over 70% of Japanese entries are joint ventures, and that logistics costs run 13–14% of GDP.
According to a KOTRA Gwangju-Jeonnam notice, overseas trade offices research demand trends, import trends and tariff rates, competition, retail prices and distribution, and quality certification item by item, priced at 150,000 won per item (excluding VAT).
Some rules apply immediately and the main obligations phase in over 12–18 months. Data fiduciaries must apply security measures, notify breaches, observe retention limits and give erasure notice; penalties reach ₹250 crore per breach.
From January 2000 to March 2026, 82% of FDI equity inflows went to six states: Maharashtra, Delhi, Karnataka, Gujarat, Tamil Nadu, and Andhra Pradesh–Telangana.
Talks to upgrade the Korea-India CEPA (in force since 2010) have resumed, and no deadline has been disclosed. Which items see tariff changes, and how, depends on the outcome.
Nykaa (beauty), Amazon, Myntra and quick commerce (Blinkit) are cited as the main channels. Nongshim distributes 19 products via Blinkit, and Lotte Wellfood is cited as earning over $6.7 million through quick commerce.
Support that bundles market and regulatory research, partner verification, local meetings and contract execution is growing. Knowing regional demand, regulation and distribution in advance is presented as the key.
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