Govt may ease PN(3) to raise China FDI

Inter-ministerial consultations have already been held in this regard, with a recent such consultation taking place in December,” the person said.

- 

The shift in thinking marks an emphasis on effective control rather than mere equity holding, as India seeks to balance the need for capital inflows with security considerations. While India remains one of the fastest-growing major economies, FDI inflows have been volatile, peaking at $84.8 billion in FY22 before slipping to roughly $71 billion in the subsequent two years. By loosening the taps for Chinese capital, India aims to hit a target of $100 billion in annual FDI, a figure seen as essential for its industrial manufacturing ambitions.

The Tencent test

The DPIIT is currently examining a Tencent investment in Flipkart, which may serve as a template for future decisions and a policy recalibration, the second person said. The Chinese technology major holds around 5% in the Indian e-commerce platform, but has no management control or board representation.

Capital call