BS EDIT: Rethinking FDI

By Business StandardPublished On Mar 12, 2026

Policy Shift

India has eased rules on investment from land-border countries after earlier restrictions

The 2020 Context

Press Note 3 aimed to curb opportunistic acquisitions during the pandemic and border tensions

Limited Relaxation

Non-controlling LBC investment up to 10% will now be allowed through the automatic route

Investment Imperative

Attracting foreign capital is vital amid global uncertainty and external pressures

Strategic Concerns

Tracing ultimate ownership remains difficult in a complex global capital network

A New Approach

India must identify strategic sectors while opening the rest to global investment