An article titled, ‘Beyond Press Note 3: Analysing Press Note 2 (2026) and the New FDI Framework for Land-Bordering Countries’ authored by Partner Pradnesh Warke, and Associate, Pragya Rani.
The article examines the significant changes introduced through Press Note 2 (2026 Series) and its impact on India’s Foreign Direct Investment (FDI) framework for countries sharing land borders with India. It traces the evolution of the regulatory regime from the liberal pre-2020 framework to the security-focused approach under Press Note 3 (2020), and analyses how Press Note 2 seeks to strike a balance between national security considerations and investment facilitation.
The authors discuss key developments including the statutory definition of beneficial ownership, the introduction of a reporting-based oversight mechanism, and the revised Standard Operating Procedure (SOP) for FDI approvals. The article highlights how the new framework enhances regulatory clarity, reduces uncertainty for investors, streamlines approval processes, and strengthens India’s commitment to ease of doing business while safeguarding strategic interests.
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