India: Inward/ Foreign Investment

The Department for Promotion of Industry and Internal Trade (“DPIIT”) issued Press Note No. 3 (2026 Series) on 23 July 2026 introducing a calibrated liberalisation to the Consolidated FDI Policy applicable to the e-commerce sector. The amendment does not overhaul the existing framework rather it carves out a narrow export-focused categories with the objective of enabling Indian manufacturers to access global markets through foreign-funded e-commerce platforms and supporting the government's broader export-promotion goals.

In a significant move to deepen foreign participation in India’s sovereign debt market, the Government of India promulgated the Income-tax (Amendment) Ordinance, 2026 on 5 June 20261, introducing a comprehensive tax exemption for eligible foreign investors investing in Government securities. Effective retrospectively from 1 April 2026, the Ordinance exempts specified income arising from Government securities from withholding tax and long-term capital gains tax, thereby addressing one of the principal tax-related barriers to foreign investment in Indian debt markets.

The Securities and Exchange Board of India has, on August 4, 2026, issued a Consultation Paper proposing a regulatory framework for issuance of Depository Receipts against units of Real Estate Investment Trusts and Publicly Listed Infrastructure Investment Trusts.

On 21 July 2026, the Reserve Bank of India (RBI) released the draft Foreign Exchange Management (Foreign Investment) Rules, 2026 (Draft FI Rules) for public consultation, proposing a comprehensive overhaul of the existing Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules).

India's capital markets regulator has rolled out one of its most significant ease-of-doing-business reforms for foreign investors in recent years. The Single Window Automatic and Generalised Access for Trusted Foreign Investors framework, known as SWAGAT-FI, consolidates and simplifies registration for a defined category of low-risk foreign portfolio investors and foreign venture capital investors.

The Reserve Bank of India has proposed a comprehensive overhaul of India's foreign investment regulatory framework through the draft Foreign Exchange Management (Foreign Investment) Rules, 2026. This fundamental restructuring shifts from an investor-centric to an investee-centric classification system, introduces clarified definitions of foreign controlled entities, and eliminates differential compliance regimes that previously varied based on investor and investee characteristics.

India’s financial services sector stands at a historic inflection point. Driven by a population exceeding 1.4 billion and a rapidly growing middle class, the sector has transitioned from an emerging market story into a sophisticated, technology-enabled ecosystem.

The Indian Supreme Court has overturned a landmark penalty imposed by the Competition Commission of India on Amazon, establishing critical boundaries on the antitrust regulator's enforcement powers. This decision addresses fundamental questions about merger notification requirements, the scope of regulatory authority, and procedural fairness in competition law proceedings. The ruling has significant implications for foreign investment and the predictability of India's regulatory framework for cross-border t

The Reserve Bank of India, Securities and Exchange Board of India, Directorate General of Foreign Trade, Competition Commission of India, and Insolvency and Bankruptcy Board of India announced a series of targeted regulatory interventions aimed at improving market efficiency and reducing regulatory friction. These measures are designed to deepen India's financial and commercial ecosystem while the country continues its economic diplomacy efforts abroad.