Press Note 3 (2020) and the 2026 Amendment: FDI from Land-Border Countries
Understand Press Note 3 (2020), the 2026 Press Note 2 amendments, the 60-day fast track for specified manufacturing sectors and what foreign investors must check.
Press Note 3 (2020): Press Note 3 of 2020 required prior government approval for FDI where the investor, or the beneficial owner of the investment, is situated in or is a citizen of a country that shares a land border with India.
The 2026 change
Legal commentary describes Press Note 2 (2026 series) as amending the Press Note 3 framework after a Union Cabinet decision. Lower-risk investments with limited restricted-country ownership are reported to fall under a reporting obligation rather than prior approval, with beneficial ownership tested against thresholds under the Prevention of Money Laundering Rules.
Fast track for specified sectors
A revised standard operating procedure dated 4 May 2026 reportedly provides a 60-day approval timeline for specified manufacturing sectors, including capital goods, electronic capital goods and components, polysilicon and ingot wafers, advanced battery components, rare earth permanent magnets and rare earth processing. Applications run through the National Single Window System (NSWS).
What to confirm
- Whether any investor in your chain is from a land-bordering country, directly or as a beneficial owner
- Which beneficial ownership threshold applies to your structure
- Whether the sector falls in the fast-track list
- Whether the investment needs approval or only a report
Caution
We have not independently verified numerical thresholds. Read the official Press Note 2 (2026) and SOP on the DPIIT website before deciding.
Checklist
- Prepare a full ownership chart to the ultimate beneficial owners
- Check residency and citizenship of each owner against the land-border list
- Identify the applicable route (approval or reporting)
- If approval is needed, file on NSWS with supporting documents
- Record the decision and keep it with the FC-GPR file
Common mistakes
- Looking only at the immediate investor, not the beneficial owner
- Assuming the automatic route covers co-investors
- Treating the fast track as available for every manufacturing activity
Frequently asked questions
What was Press Note 3?
A 2020 rule requiring government approval for FDI from or linked to land-border countries.
Did the 2026 amendment remove approvals?
Reports say it created a reporting route for lower-risk cases and a 60-day track for specified sectors, but approval remains for others.
Where do I apply?
On the National Single Window System.
Related guides
- FC-GPR: Reporting Foreign Investment in an Indian Company
- Permanent Establishment (PE) Risk in India for Foreign Companies
- India Compliance Calendar for Foreign-Owned Companies (FEMA, Tax and ROC)
Sources and further reading
Note: rules, fees and dates change. Verify against the official RBI, MCA and Income Tax Department sources before relying on this page.
Need help with Press Note 3 (2020)? A2 Consultants helps foreign companies enter and operate in India. Book a free 30-minute call.