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India Gets ₹4,896 Crore FDI In 29 Projects

India attracts ₹4,896 crore FDI, easing land-border rules sparks investment

Mumbai Alert · Markets Desk
Mumbai Alert · Markets Desk
Markets Desk · Mumbai Alert News · Sat, 22 August 2026 at 01:00 pm
India Gets ₹4,896 Crore FDI In 29 Projects

India has attracted ₹4,896 crore in foreign direct investment (FDI) through 29 projects since the government relaxed investment rules in May. The investments were made by entities based in countries including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg, and the Cayman Islands.

The projects cover various sectors such as information technology, artificial intelligence, communications, manufacturing, pharmaceuticals, data centres, and transport services. The inflows followed changes introduced under Press Note 2 of 2026, which permits investments through the automatic route where an entity based outside India's land-bordering countries has non-controlling ownership of up to 10% by companies from those countries.

Previously, even a 1% beneficial ownership by a company from a land-bordering country could trigger the government-approval requirement under Press Note 3 of 2020. The government had introduced tighter rules in 2020, requiring approval for investments originating from countries sharing a land border with India, as well as investments from other jurisdictions with ownership links to such countries.

The eased framework was cleared by the Union Cabinet in March and notified by the Department for Promotion of Industry and Internal Trade in May. Investments where a land-bordering-country company has a controlling interest will continue to require government approval. Direct investments from entities based in China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan also remain subject to government scrutiny.

However, the government has introduced a 60-day approval timeline for investments in select sectors to speed up decision-making. The reforms are part of a broader attempt to revive foreign investment into India. The government has also relaxed FDI rules for inventory-based ecommerce and is working on a revised model Bilateral Investment Treaty.

The push comes as India's net FDI inflows have weakened sharply, falling to $6.95 billion in FY26 from an annual average of about $40 billion between FY20 and FY22. The government's efforts to ease investment rules and speed up approvals are expected to boost foreign investment in the country.

The relaxation of FDI rules is a significant step towards making India more attractive to overseas investors. The government's move to permit investments through the automatic route for entities with non-controlling ownership of up to 10% by companies from land-bordering countries is expected to increase foreign investment in various sectors.

In conclusion, the easing of land-border investment rules has sparked a significant increase in foreign direct investment in India, with ₹4,896 crore invested in 29 projects. The government's efforts to revive foreign investment and make the country more attractive to overseas investors are expected to have a positive impact on the economy.

The government's decision to introduce a 60-day approval timeline for investments in select sectors is also expected to speed up decision-making and increase foreign investment. The relaxation of FDI rules for inventory-based ecommerce and the revised model Bilateral Investment Treaty are also expected to boost foreign investment in the country.

Overall, the easing of land-border investment rules is a positive step towards increasing foreign investment in India and making the country more attractive to overseas investors. The government's efforts to revive foreign investment are expected to have a significant impact on the economy and increase economic growth.

The increase in foreign direct investment is also expected to create new job opportunities and increase economic activity in various sectors. The government's move to ease investment rules and speed up approvals is expected to boost business confidence and increase investment in the country.

In the coming months, the government is expected to continue its efforts to revive foreign investment and make the country more attractive to overseas investors. The easing of land-border investment rules is a significant step towards achieving this goal and increasing foreign investment in India.

The government's decision to relax FDI rules and introduce a 60-day approval timeline for investments in select sectors is expected to have a positive impact on the economy and increase foreign investment. The revised model Bilateral Investment Treaty is also expected to boost foreign investment in the country and make India more attractive to overseas investors.

The increase in foreign direct investment is a positive sign for the Indian economy and is expected to have a significant impact on economic growth. The government's efforts to revive foreign investment and make the country more attractive to overseas investors are expected to continue in the coming months.

The easing of land-border investment rules is a significant step towards increasing foreign investment in India and making the country more attractive to overseas investors. The government's move to permit investments through the automatic route for entities with non-controlling ownership of up to 10% by companies from land-bordering countries is expected to increase foreign investment in various sectors.

In conclusion, the easing of land-border investment rules has sparked a significant increase in foreign direct investment in India, with ₹4,896 crore invested in 29 projects. The government's efforts to revive foreign investment and make the country more attractive to overseas investors are expected to have a positive impact on the economy and increase economic growth.

The government's decision to introduce a 60-day approval timeline for investments in select sectors is also expected to speed up decision-making and increase foreign investment. The relaxation of FDI rules for inventory-based ecommerce and the revised model Bilateral Investment Treaty are also expected to boost foreign investment in the country and make India more attractive to overseas investors.

Overall, the easing of land-border investment rules is a positive step towards increasing foreign investment in India and making the country more attractive to overseas investors. The government's efforts to revive foreign investment are expected to have a significant impact on the economy and increase economic growth.

Frequently asked questions

What is the total amount of FDI attracted by India after easing land-border investment rules?

India has attracted ₹4,896 crore in foreign direct investment through 29 projects.

Which countries have invested in India after the easing of land-border investment rules?

Entities based in countries including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg, and the Cayman Islands have invested in India.

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