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International Relations GS 2 In the news 25 times

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.

Key details
  • 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
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● Tracked since February 16, 2026 · last seen September 12, 2026 · updates as the daily brief publishes

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