Overview

• Press Note 3, issued in 2020, still requires prior government approval for foreign investments from countries sharing a land border with India.
• The rule applies equally to China, Pakistan, Bangladesh, Bhutan, Nepal, Myanmar and Afghanistan without any exceptions.
• Officials denied recent claims that the approval process for Chinese investment applications has been streamlined.
• An inter-ministerial committee led by the Home Secretary continues to evaluate all proposals under the land-border rule.
• Most FDI into India enters via an automatic approval route, with only applications from bordering nations facing added scrutiny.