In March 2026, the Union Cabinet, chaired by the Prime Minister (PM) Narendra Modi, approved amendments to India’s Foreign Direct Investments (FDI) framework governing investments from countries that share a Land Border Countries (LBCs).

• The rules apply to China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan.

Key Changes in FDI Rules:

Aim: The decision aims to streamline the approval process while ensuring national security and economic safeguards.

Beneficial Ownership(BO) Framework: Investments where the beneficial owner from LBCs holds a non-controlling stake of up to 10% will now be permitted through the automatic route, subject to sectoral caps and regulatory conditions.

Expedited Approval Mechanism: The amended policy introduces a 60-day decision timeline for investment proposals from LBCs in specific sectors.