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Press Note 3 Relaxation
March 13 , 2026
14 hrs 0 min
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- The Union Cabinet of India has approved a partial relaxation of Foreign Direct Investment (FDI) rules under Press Note 3 (2020) for countries sharing land borders with India.
- Press Note 3 (2020) requires government approval for investments from neighbouring countries such as China, Pakistan, Bangladesh, Nepal, Myanmar, Bhutan, and Afghanistan.
- The policy was introduced in 2020 during the COVID-19 pandemic to prevent opportunistic takeovers of Indian companies.
- The new relaxation allows limited FDI in selected manufacturing sectors such as capital goods, electronic capital goods, electronic components, and solar manufacturing inputs (polysilicon and ingot-wafer).
- Strategic sectors like semiconductors remain restricted.
- Investments up to 10% beneficial ownership from land-border countries can be allowed through the automatic route, while majority ownership must remain with Indian entities.
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