The government is considering a proposal to ease foreign direct investment (FDI) norms specifically for downstream investments, according to sources. The review focuses on making it easier for foreign investors to participate in activities that follow an initial investment—such as further expansion or operating investments by related entities. The proposal is aimed at encouraging higher foreign inflows into India and supporting job creation. Sources also note that a large share of existing FDI already comes through India’s automatic route, which typically allows certain investments without prior government approval. NDTV reports that more than 90% of FDI inflows are received under this automatic route, underscoring the current prominence of the streamlined approval pathway. While details of the proposed changes are not specified in the available summaries, the reported effort suggests the government wants to adjust the regulatory framework for downstream investments while keeping the overall structure of FDI entry routes in mind. The proposal is currently under consideration as part of the government’s broader effort to improve the ease of investing and attract additional capital.