India Boosts FDI Approval Threshold to $1.57B Amid Global Economic Uncertainty

India is overhauling its foreign direct investment (FDI) rules to speed up clearances for larger investments. The government proposes to triple the threshold for FDI requiring Cabinet Committee on Economic Affairs (CCEA) approval from $523M to $1.57B.

This change aims to make it easier for large foreign investors to pour money into India, but experts warn that actual inflows depend on global risk appetite and could impact the value of the rupee against major currencies like USD/INR.

With FDI inflows already rising 18% to $58.84B in FY26, officials caution that any rise in dollar inflows could alter INR returns on key assets such as Nifty, gold, and BTC, influencing crypto adoption and capital fundraising.