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FDI easing not meant for Chinese firms, clarifies govt
Business Standard
|March 12, 2026
Global investors having Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route, across sectors.
But this would depend on sectoral caps, according to changes approved under the foreign direct investment (FDI) policy, government officials said on Wednesday.
Earlier, foreign firms with shareholders from China or land-border nations owning even a single share had to seek mandatory approval to invest in any sector in India under the Press Note 3 of the FDI policy.
However, entities registered in China and Hong Kong and countries sharing land borders with India, will continue to need prior government approval in case they want to invest in India.
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