Land-border FDI rules amended — a 10% threshold and a 60-day review
Summary
A Cabinet-approved amendment of 10 March 2026 allows investors from land-border countries to use the automatic route up to 10% non-controlling beneficial ownership, and sets a 60-day decision deadline for designated manufacturing sectors such as capital goods and electronic components.
Key points
- Beneficial ownership is assessed at investor level (AML rules)
- In designated sectors Indian citizens or entities must keep majority stake and effective control
- The sector list is adjusted periodically by the Secretaries' committee
For Korean companiesBefore signing, check whether your joint-venture or investment counterpart has any land-border-country capital.