Government Eases FDI Norms for Countries Sharing Land Borders with India

The Union Cabinet has amended Foreign Direct Investment (FDI) rules for Land Border Countries (LBCs), now allowing up to 10% non-controlling stake via the automatic route.
Previously, under Press Note 3 of 2020, all investments from countries sharing a land border with India required mandatory government approval.
For investments exceeding the 10% threshold in selected sectors like electronics and manufacturing, a 60-day approval timeline has been established.
A mandatory safeguard ensures that majority equity and controlling interests in such high-stake instances must remain with Indian citizens or domestic entities.
Exam Perspective: This move balances the need for global capital in strategic manufacturing sectors while maintaining security oversight on neighboring nations like China and Pakistan.

Key Facts / Static GK

Land Border Countries: China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, Afghanistan
Press Note 3 (2020): Initial rule requiring government clearance for LBC investments

Q Practice Quiz — 13 March 2026

1. Who has been appointed as the new Managing Director and Chief Executive Officer of HDFC ERGO General Insurance in March 2026?

A Anuj Tyagi

B Parthanil Ghosh

C Keki Mistry

D Ritesh Kumar

E Aditya Puri

Explanation: Parthanil Ghosh has been selected to lead HDFC ERGO General Insurance as its MD and CEO, succeeding Anuj Tyagi.

2. What is the primary objective of the 'Lake and Air Watch' initiative launched by the Gujarat government?

A To provide free drinking water to rural households

B To monitor urban lake ecosystems and air quality using real-time digital systems

C To promote water sports and tourism in the state

D To establish new wildlife sanctuaries across the coastal belt

E To provide subsidies for electric vehicle purchases

Explanation: The 'Lake and Air Watch' initiative is designed for real-time environmental monitoring of lake health and air quality across Gujarat's cities using digital and satellite-based systems.

3. Under the Orunodoi 3.0 scheme of the Assam government, what is the specific amount transferred to each woman beneficiary?

A ₹5,000

B ₹7,500

C ₹9,000

D ₹10,000

E ₹12,000

Explanation: The Assam government transferred ₹9,000 each to 40 lakh women beneficiaries under the Orunodoi 3.0 scheme to provide financial assistance.

4. Regarding the 'Nirbhaya Nisha' initiative, which of the following statements is correct?

A It is a healthcare initiative for elderly citizens in Kerala.

B It provides rapid police assistance to women between 9 PM and 5 AM.

C It was launched by the Ministry of Home Affairs for all Union Territories.

D The initiative offers financial rewards for reporting crimes.

E It is primarily focused on providing free transport to school children.

Explanation: The Kerala Police launched 'Nirbhaya Nisha' specifically to provide rapid assistance to women during night hours (9 PM to 5 AM).

5. Where was the 'Indian Orchid Festival 2026' held?

A Gangtok, Sikkim

B Pakyong, Sikkim

C Kalimpong, West Bengal

D Shillong, Meghalaya

E Itanagar, Arunachal Pradesh

Explanation: The Indian Orchid Festival 2026 concluded at the Pakyong district in Sikkim.

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Government Eases FDI Norms for Countries Sharing Land Borders with India

Key Facts / Static GK

Q Practice Quiz — 13 March 2026

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