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Press Note 3 FDI Relaxation for Land-Border Countries

14 March 20261 min read
ECONOMYPress Note 3 FDIRelaxation forLand-BorderCountries14 March 2026safalsetu.com

Why in the news

The Union Cabinet loosened investment rules for land-bordering countries, including China, to attract capital and link India closer to global supply chains.

Background

  • Press Note 3: April 2020, DPIIT; prior approval needed for FDI from these countries, whatever the sector or size
  • Covered: China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, Afghanistan; also when the beneficial owner is from them
  • Brought in during COVID-19 to stop opportunistic takeovers, and after the Galwan Valley clash

Revised framework

AreaChange
Small stakesBelow 10%, no controlling interest: automatic route
Beneficial ownershipThreshold of at least 10% ownership
Timeline60 days in selected sectors
Fast-track sectorsElectronic components, capital goods, solar chain (polysilicon, ingot-wafer)

Exam angle

  • Issuer: DPIIT; numbers: 10% and 60 days.
  • Concept: automatic route versus approval route.

Test yourself

1. Which department issued Press Note 3 in April 2020 on FDI from land-border countries?

Press Note 3 was issued by DPIIT in April 2020.

2. Under the revised Press Note 3 framework, land-border investments below what ownership and without control can use the automatic route?

Stakes below 10% without controlling interest qualify for the automatic route.

3. Within how many days must investment proposals in selected sectors be processed under the revised Press Note 3 framework?

The revision sets a 60-day processing limit in chosen sectors.

This topic is part of Daily Current Affairs 10 & 11 March 2026 (42 topics).

All topics of the dayDay quizMarch 2026

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