Revised FDI Framework Draws 29 Proposals Worth Rs 4,895.65 Crore Across IT, AI, Pharma, Manufacturing: Govt

New Delhi, Aug 21 (KNN) A total of 29 foreign direct investment (FDI) proposals worth Rs 4,895.65 crore have been reported under the revised FDI framework as of August 20, 2026, covering sectors such as IT, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services.

The revised framework allows investments through the automatic route where ownership from countries sharing a land border with India is non-controlling and up to 10percent, subject to applicable sectoral conditions.

The investments have been reported by entities based in jurisdictions including Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.

The changes were introduced through Press Note 2 of 2026 and amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on May 1, 2026. 

Under the revised rules, the beneficial ownership test is applied at the investor-entity level.

Earlier, investments involving beneficial ownership from land-bordering countries required prior government approval even when such ownership was minimal. 

The revised framework is aimed at reducing transaction time, providing greater regulatory clarity and facilitating foreign investment.

(KNN Bureau)