The country had received FDI of $44.36 billion during April-March 2018-19.
India has drafted rules proposing tighter scrutiny of new Foreign Portfolio Investors (FPIs) from China and Hong Kong.
The government on Saturday made its prior approval mandatory for foreign direct investments (FDI) from countries that share land border with India to curb 'opportunistic takeovers' of domestic firms, a move which will restrict FDI from China.
Countries which shares land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
The cabinet also allowed 100 per cent foreign investment in coal mining and contract manufacturing.
The CBI has booked NDTV promoters Prannoy Roy and Radhika Roy and others for allegedly violating foreign direct investment (FDI) rules in a 2007-09 investment, a charge denied by the company.
Foreign investments are considered crucial for India, which needs around billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth.