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FDI curbs relaxed for China, others under Press Note 3
Business Standard
|March 11, 2026
Automatic route allowed for stakes below 10%
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday eased the restrictions on investments from countries sharing land borders with India, including China, by allowing investments through the automatic route for non-controlling stakes below 10 per cent.
The amendments to Press Note 3 of 2020 also introduced a definitive 60-day timeline for processing investment proposals in sectors such as electronic components, capital goods, and solar cells.
The changes have been approved six years after the curbs were introduced, and are aimed at boosting foreign investment from China to help India integrate with global value chains and boost domestic manufacturing.
The government expects these changes in the foreign direct investment (FDI) policy to enable greater inbound investments from global funds into startups and deep-tech firms, while maintaining some regulatory oversight.
This story is from the March 11, 2026 edition of Business Standard.
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