India clears 1 Chinese FDI proposal in FY26
India approved just one foreign direct investment (FDI) proposal from China worth Rs 1 crore during FY26, while clearing 13 proposals from Hong Kong with
India approved just one foreign direct investment (FDI) proposal from China worth Rs 1 crore during FY26, while clearing 13 proposals from Hong Kong with a combined investment of Rs 610.42 crore, according to official data.The approvals come under the government's Press Note 3 regime, introduced in April 2020, which mandates prior government approval for investments from countries sharing a land border with India. The measure was brought in during the Covid-19 pandemic to prevent opportunistic takeovers and acquisitions of Indian companies.Overall, the government approved 63 FDI proposals worth Rs 10,292.67 crore (about $1.18 billion) between April 2025 and March 2026, data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.Singapore emerged as the largest source of approved FDI in value terms, with five proposals worth Rs 3,259.88 crore receiving government clearance.
The UK followed with five proposals valued at Rs 2,477.67 crore, while two proposals from Thailand worth Rs 1,600 crore were also approved.In March this year, the government eased certain provisions of Press Note 3 by allowing investments with up to 10% non-controlling beneficial ownership from land-border countries to qualify under the automatic route, subject to applicable sectoral caps and conditions.However, the relaxation does not apply to entities incorporated in China, Hong Kong or any other country sharing a land border with India. These countries include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.Despite concerns over Chinese investments, India has historically received limited direct FDI from China.
Between April 2000 and March 2026, China ranked 23rd among FDI sources, accounting for just 0.32% of total FDI equity inflows into India, with investments worth $2.51 billion (Rs 16,162.25 crore).Hong Kong ranked 15th during the same period, contributing 0.62% of India's cumulative FDI equity inflows, amounting to $4.91 billion (Rs 31,220.30 crore).The latest figures are broadly
in line with the previous financial year. In FY25, India had also approved only one Chinese FDI proposal, valued at Rs 28.71 crore. Overall, the government cleared 82 proposals under the approval route that year, involving investments worth Rs 39,758 crore.Hong Kong, meanwhile, received approval for 11 proposals worth Rs 1,225.28 crore in FY25.(With inputs from PTI)
The BriefWire