Press Note 3 (2020 Series)
FDI Policy for Land Border Countries
Press Note 3 was issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on 17 April 2020, amending the Consolidated FDI Policy of 2017. It mandated prior government approval for all FDI from entities incorporated in countries sharing a land border with India, or where the beneficial owner is situated in or is a citizen of such a country. The policy was introduced to prevent opportunistic takeovers of Indian companies during the COVID-19 pandemic.
- Covers seven countries: Pakistan, Afghanistan, Nepal, Bhutan, China (including Hong Kong), Bangladesh, and Myanmar
- Applies to both direct investment and indirect transfers resulting in beneficial ownership changes
- DPIIT issued SOPs on 9 November 2020 and 17 August 2023
- As of April 2024, out of 526 FDI proposals submitted, only 124 were approved while 201 were rejected
- Paragraph 3.1.1 of the FDI Policy was amended to include the "beneficial owner" test
● Tracked since February 16, 2026 · last seen March 10, 2026 · updates as the daily brief publishes
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