KATHMANDU, March 13: The Indian government has eased foreign direct investment (FDI) regulations for investors from neighboring countries that share a land border with India, including Nepal.
According to Indian media reports, the Union Government of India amended the existing Press Note 3 of its FDI policy during a Cabinet meeting held on March 10. With this revision, investors from countries such as Nepal, China, Bangladesh, Pakistan, Bhutan, Myanmar, and Afghanistan will find it easier to invest in India.
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Previously, investors from these nations were required to obtain special permission from Indian authorities due to security concerns. Under the new rules, eligible investors can now receive automatic approval, provided they meet specific criteria set by the Indian government. A 60-day deadline has been established for investments in strategic manufacturing sectors.
India has also relaxed FDI norms for Chinese companies. According to the updated policy, “If a company from China or any other neighboring country holds up to a 10 percent stake in a foreign firm and does not have control over that company, it will be allowed to invest in India through the automatic route without requiring government approval.”
The Indian government is now focusing on permitting FDI in key sectors such as electronic components, heavy machinery, industrial equipment, and solar energy. The new investment framework is expected not only to support the establishment of manufacturing facilities but also to strengthen supply chains, helping India increase its share in the global market.
According to Indian government records, the country received over $1 trillion in FDI between April 2000 and December 2025.
