India Weighs Raising FDI Approval Threshold to ₹15,000 Crore

India's central government is considering raising the foreign direct investment approval threshold from ₹5,000 crore to ₹15,000 crore [1, 2].

The Department for Promotion of Industry and Internal Trade (DPIIT) is leading the proposal to simplify the approval mechanism [1, 2]. This move aims to reduce bureaucratic hurdles for major overseas investors and encourage larger capital injections into the Indian economy [1, 2].

Under current regulations, investments exceeding ₹5,000 crore ^[1] require specific government clearance. This threshold has remained unchanged since 2015 ^[2]. By increasing the limit to ₹15,000 crore ^[2], the government intends to automate more approvals and shorten the time required for foreign firms to deploy capital.

Officials said the change is part of a broader effort to make the country more competitive for global business. The proposal focuses on streamlining the process for large-scale projects that currently face lengthy review cycles, a bottleneck that has historically slowed the pace of high-value foreign entries.

The DPIIT is reviewing how the new ceiling will interact with existing sector-specific caps. While the general threshold may rise, certain sensitive sectors may still require rigorous scrutiny regardless of the investment amount.

The government is weighing these changes to ensure that the ease of doing business improves without compromising national security interests. The move reflects a shift toward a more liberalized investment regime intended to boost industrial growth, and infrastructure development [1, 2].