Indian Economy·Policy Reforms
Overseas Investment by Indians — Policy Reforms
Constitution VerifiedUPSC Verified
Version 1Updated 5 Mar 2026
| Entry | Year | Description | Impact |
|---|---|---|---|
| FEMA Amendment 2015 | 2015 | Significant liberalization of overseas investment norms including increase in LRS limit from USD 200,000 to USD 250,000, simplification of automatic route procedures, and relaxation of sectoral caps in various industries. | Enhanced ease of doing business for Indian companies seeking overseas expansion and provided greater flexibility for individual investors under LRS, contributing to increased overseas investment flows. |
| FEMA Amendment 2020 | 2020 | Introduction of enhanced due diligence requirements for investments in countries sharing land borders with India, reflecting national security considerations and geopolitical developments. | Strengthened regulatory oversight over sensitive overseas investments while maintaining the overall liberalized framework, balancing economic interests with security considerations. |