India’s commerce ministry reported 29 foreign direct investment proposals valued at 48.95 billion rupees ($511.5 million) submitted under a relaxed regulatory framework introduced in May.
The new rule permits investors from countries sharing a land border with India—primarily China—to acquire non-controlling stakes of up to 10% in Indian firms through the automatic approval route. Prior to the change, any beneficial ownership linked to such countries required prior government clearance under 2020 rules, even for minority stakes.
The proposals span information technology, artificial intelligence, manufacturing, pharmaceuticals, data centers and transport services. All investments remain subject to existing sectoral caps and other regulatory conditions.
The government’s decision to ease restrictions was aimed at attracting capital while maintaining oversight over strategic sectors. The commerce and industry ministry did not disclose the names of the applicants or the specific sectors targeted by the proposals.
