India Inc's foreign investment jumps 40 per cent to US$ 2.10 billion in January

29 FDI Investments Worth ₹4,895.65 Crore Reported Under Revised Framework

The investments span sectors including Information Technology, Artificial Intelligence, Information and Communication, manufacturing, pharmaceuticals, data centres and transport services. Investors and entities involved are based in jurisdictions such as Mauritius, the United States, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

India has reported 29 foreign direct investment proposals worth ₹4,895.65 crore under the revised FDI framework up to August 20, 2026, according to the government.

The investments span sectors including Information Technology, Artificial Intelligence, Information and Communication, manufacturing, pharmaceuticals, data centres and transport services. Investors and entities involved are based in jurisdictions such as Mauritius, the United States, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

The revised framework, introduced through Press Note 2 of 2026 and amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, came into effect on May 1, 2026. It allows foreign investors with non-controlling beneficial ownership of up to 10% from countries sharing a land border with India to invest through the automatic route, subject to existing sectoral caps and other applicable conditions.

Under the new system, the beneficial ownership test is applied at the level of the investor entity. Eligible investors can proceed without prior government approval after reporting the relevant information to the authorities.

The change marks a relaxation from the framework introduced through Press Note 3 of 2020, which required prior government approval even when beneficial ownership from land-bordering countries was relatively small.

The government said the reform is intended to reduce transaction time, provide greater certainty to investors and improve the ease of doing business while retaining safeguards for investments involving entities linked to countries sharing a land border with India.