Press Note 3 (2020)
FDI Screening for Bordering Countries
Press Note 3 of 2020, issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on 17 April 2020, requires any investment from an entity based in — or with a beneficial owner based in — a country sharing a land border with India to go through the government approval route rather than the automatic route, regardless of sector.
- Countries covered: China, Pakistan, Bangladesh, Bhutan, Nepal, Myanmar and Afghanistan; in practice the measure was introduced amid concerns about opportunistic acquisitions of India's COVID-19-weakened companies, primarily from China
- The restriction also applies to any transfer of existing ownership that results in beneficial ownership shifting to a bordering-country entity
- Of several hundred FDI proposals received from these countries since 2020, only a fraction have been approved, with many rejected or left pending, reflecting continued scrutiny of Chinese investment even as bilateral trade in goods has grown
● Tracked since February 16, 2026 · last seen September 12, 2026 · updates as the daily brief publishes
22 Aug '26
Press Note 3 Relaxations: Land-Border FDI Rules Eased, First Investment Numbers In
Economics
30 Apr '26
India Eases FDI Norms: What Changes Under Press Note 3 and What Remains Restricted
Economics
16 Mar '26
India Eases FDI Rules for Firms with Minority Chinese Shareholding Under Press Note 3
Economics
13 Mar '26
India Revises FDI Policy for Land Bordering Countries Including China Under Press Note 3
Economics
11 Mar '26
India Eases FDI Norms for Land Border Countries: Balancing Capital and Security
Economics
10 Mar '26
India Eases FDI Norms for Land-Border Countries Including China: Press Note 3 Relaxed
Economics
10 Mar '26
India Amends Press Note 3: Eases FDI Rules for China and Other Land-Border Countries
Economics
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