- India's inbound investment framework requires a strategic balance between welcoming foreign capital for growth and safeguarding national security interests. - The article discusses the evolution of foreign direct investment (FDI) policies, including restrictions like Press Note 3 aimed at preventing opportunistic takeovers from bordering nations. - Calibrating the framework involves streamlining regulatory approvals, reducing compliance burdens, and ensuring regulatory certainty to boost investor confidence. - Balancing liberalisation with strategic sector protections remains critical for India's ambition of becoming a global manufacturing and economic hub. - **Press Note 3:** A regulatory policy introduced by DPIIT requiring prior government approval for foreign direct investments from countries sharing a land border with India to prevent opportunistic takeovers. - **Foreign Exchange Management Act (FEMA):** The overarching legislation enacted in 1999 to consolidate and amend laws relating to foreign exchange, facilitating external trade and payments and regulating foreign direct investment in India. **Introduction** The article examines the strategic calibration of India's inbound investment framework, discussing how policies must carefully balance the need for foreign direct investment (FDI) to spur economic growth and technological advancement with the imperative of protecting national security and domestic industries from opportunistic acquisitions. **Core Issue and Detailed Points** - India's inbound investment framework requires a strategic balance between welcoming foreign capital for growth and safeguarding national security interests. - The article discusses the evolution of foreign direct investment (FDI) policies, including restrictions like Press Note 3 aimed at preventing opportunistic takeovers from bordering nations. - Calibrating the framework involves streamlining regulatory approvals, reducing compliance burdens, and ensuring regulatory certainty to boost investor confidence. - Balancing liberalisation with strategic sector protections remains critical for India's ambition of becoming a global manufacturing and economic hub. **Key Statutory Bodies, Acts & Concepts** - **Press Note 3:** A regulatory policy introduced by DPIIT requiring prior government approval for foreign direct investments from countries sharing a land border with India to prevent opportunistic takeovers. - **Foreign Exchange Management Act (FEMA):** The overarching legislation enacted in 1999 to consolidate and amend laws relating to foreign exchange, facilitating external trade and payments and regulating foreign direct investment in India.