Now Reading: Press Note 3 relaxations yield Rs 4,895 crore FDI so far
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Press Note 3 relaxations yield Rs 4,895 crore FDI so far
The government on August 21, 2026 said India received Rs 4,895.65 crore in foreign direct investment from 29 projects that benefited from relaxations to Press Note 3 rules. The investments came from…
The government on August 21, 2026 said India received Rs 4,895.65 crore in foreign direct investment from 29 projects that benefited from relaxations to Press Note 3 rules. The investments came from countries including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands. Sectors covered include IT, AI, pharmaceuticals, manufacturing, data centres and transport services.
Press Note 3, issued in April 2020, required government approval for FDI from any country sharing a land border with India, widening an earlier rule that applied only to Bangladesh and Pakistan. The move aimed to prevent hostile takeovers of pandemic-hit companies. In March 2026, the government eased the rule to allow automatic route investments if the land-border country held less than a 10% stake in the investing entity.
The Rs 4,895 crore figure represents less than 1% of total FDI India received in 2025-26. The government stated the relaxations would improve ease of doing business and attract investments contributing to domestic value addition and global supply chain integration.
Indian Opinion Analysis
Press Note 3 was originally crafted to block opportunistic Chinese takeovers of distressed Indian firms during the pandemic, not as a direct response to the Galwan clashes which occurred a month later. The March 2026 relaxation addresses a practical problem: even companies with tiny Chinese minority stakes were caught in the net, stalling legitimate investments from third countries. The Rs 4,895 crore figure, though small, signals that the bottleneck is real. Watch for quarterly FDI data to see if the pace accelerates, and whether Chinese-linked investments remain effectively excluded through the 10% threshold loophole.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
