India has eased its foreign investment rules under Press Note 3 (PN3), allowing minority stakes of up to 10% from countries sharing land borders, without prior government approval.
The move benefits US and EU institutional funds that previously faced restrictions due to indirect Chinese ownership. Key sectors now see a 60‑day fast-track approval process, cutting delays for foreign capital.
This change could unlock stalled investments, boost startups, and accelerate growth in tech and manufacturing, while maintaining security checks. Analysts view it as a strategic step to attract global funds to India’s market.