Press Note 3 of 2020 amendment provides for beneficial ownership definition: Govt to Parliament

New Delhi: The amendment of the Press Note 3 of 2020, provides for a definition and criteria for the determination of beneficial ownership under the Prevention of Money Laundering Rules, 2005 for countries sharing land border with India (LBC), Minister of State for Commerce and Industry Jitin Prasada told Rajya Sabha.

Further, investors with non-controlling LBC ownership of up to 10% shall be permitted under the automatic route as per the applicable sectoral caps, entry routes and attendant conditions.

Such investments would be subject to the reporting information by the investee entity and proposals for LBC investments in specified sectors shall be processed and decided within 60 days.


In a separate reply, he said total FDI inflow reported during the first nine months of FY26 at $73.7 billion is the highest ever for first three quarters of a fiscal, and has increased 16% compared to year ago period at $63.1 billion.

“The recent trend in net FDI inflows is associated with increased repatriation/disinvestment and rising Overseas Direct Investment (ODI) outflows... The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination,” he said.

West Asia crisis
Stakeholders across sectors, including agricultural products, textiles, chemical and fertilizers, petroleum products, and engineering goods have reported disruptions in maritime and air cargo routes, increased freight costs due to rerouting and war-risk surcharges, congestion at ports, and delays arising from longer transit times, the government told Parliament, adding that it has taken measures for continuation of trade flows through logistic adjustments, rerouting of consignments, use of alerative shipping routes.

Transhipment of cargo is also taking place through alternate ports and via green corridors between countries, as a short term measure.

PLI
The Production Linked Incentives or PLI schemes attracted over Rs 2.16 lakh crore investment and generated 14.39 lakh jobs, as of December 31, 2025. The investments made under the PLI Schemes have led to incremental production and sales of over Rs 20.41 lakh crore and resulted in an employment generation of over 14.39 lakh (direct and indirect), and 836 applications have been approved across all 14 sectors covered under the PLI framework.

In a separate reply, the government said that Under the Electronics Sector (Large Scale Electronics Manufacturing & IT
Hardware 2.0), about Rs 15,554 crore of incentives have been disbursed and an incremental production of about Rs 2.45 lakh crore have been reported while under the automobiles & auto components scheme, about Rs 2,377.56 crore have been disbursed as incentives and an incremental production of about 13,126 crore has been reported in this financial year till December 2025 by 72 companies.

Overall, the PLI schemes have generated incremental production worth about Rs 4.2 lakh crore in this financial year up to December 2025.

Rejected consignments
The US rejected 169 consignments of spices and 41 of processed foods from India in 2025 while the EU reported 73 cases of non-compliance and 29 processed food consignments from India in 2025. Australia, Thailand, Indonesia, Japan, Russia, Singapore, Hong Kong and the Philippines also rejected consignments of spices, peanut and its products, and processed foods.