On March 10, India eased rules for investments from countries with which it shares a land border, allowing automatic approval for non-controlling stakes of up to 10% with compliance requirements, and establishing a 60-day approval timeline for investments in sectors such as electronic components, rare earth magnets and wafers, Bloomberg reported on March 11.

In April 2020, India's government issued Press Note 3 and imposed stricter oversight on investments originating from countries that share a land border with India. The move came as relations with China deteriorated ahead of the deadly 2020-21 Himalayan border clashes. Although the policy did not explicitly mention China, observers broadly interpreted it as intended to curb Chinese investment.