Indian Economy·Policy Reforms

Overseas Investment by Indians — Policy Reforms

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Version 1Updated 5 Mar 2026
EntryYearDescriptionImpact
FEMA Amendment 20152015Significant 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 20202020Introduction 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.
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