India revisits Press Note 3: Key clarifications to FDI framework for investments from land-bordering countries

The broader market has seen significant corrections recently, making certain sectors more attractive for foreign investment. This policy clarification could provide a much-needed catalyst for capital inflow.

• •India has clarified key aspects of Press Note 3 governing investments from land-bordering countries.
• •Changes include a 10% beneficial ownership threshold.
• •Time-bound approvals for select sectors have been introduced.
• •The aim is to reduce regulatory uncertainty and balance national security with foreign investment facilitation.
• •Risk flag: Geopolitical tensions with land-bordering countries could still deter investment.