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Highlights
- 29 investment proposals worth Rs 4,895.65 crore have been attracted under India’s revised FDI framework as of August 20, 2026.
- Proposals span IT, AI, manufacturing, pharmaceuticals, data centres and transport services.
- Investors from Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands are among those submitting proposals.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
India’s revised foreign direct investment (FDI) framework has attracted 29 investment proposals involving Rs 4,895.65 crore as of August 20, 2026, reflecting growing investor interest across key sectors, according to an official release from the Ministry of Commerce and Industry on Friday, August 21, 2026.
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Revised FDI Framework Attracts Investments Across Key Sectors
The proposed investments span Information Technology, Artificial Intelligence (AI), Information and Communication, manufacturing, pharmaceuticals, data centres and transport services, among others. The investors or entities are based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands.
10 Percent LBC Ownership Threshold Gets Automatic Route
The revised framework is aimed at facilitating and expediting foreign investment by removing the requirement for prior government approval in cases involving non-controlling ownership of up to 10 percent by entities from Land Bordering Countries (LBCs). “The reform provides greater certainty to investors, reduces transaction time and further strengthens the ease of doing business in India,” the Commerce Ministry said.
Earlier FDI Approval Requirement Had Raised Investor Concerns
According to the Ministry, under Press Note 2 of 2026 and the subsequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on May 1, 2026, the beneficial ownership test is now applied at the investor-entity level. Investors with non-controlling LBC ownership of up to 10 percent can invest through the automatic route, subject to applicable sectoral caps, entry routes and other conditions.
After reporting the prescribed information to the government, eligible investor entities can proceed with their investments without seeking any additional approval.
