India clears one China FDI proposal as Hong Kong gets 13 in FY26

Published 2 August 2026 · india

India approved only one foreign direct investment (FDI) proposal from China worth Rs 1 crore during the financial year 2025-26, while clearing 13 investment proposals

India approved only one foreign direct investment (FDI) proposal from China worth Rs 1 crore during the financial year 2025-26, while clearing 13 investment proposals from Hong Kong worth Rs 610.42 crore, according to official data released by the Department for Promotion of Industry and Internal Trade (DPIIT), reports PTI. The figures come as investments from countries sharing a land border with India continue to require prior government approval under Press Note 3, introduced in April 2020 to prevent opportunistic takeovers of Indian companies during the COVID-19 pandemic. Read Full Story Overall, the government approved 63 FDI proposals worth Rs 10,292.67 crore (USD 1.18 billion) under the government approval route during April 2025 to March 2026.

SINGAPORE TOPS APPROVED FDI PROPOSALS Singapore emerged as the largest source of approved FDI proposals by value, with five proposals worth Rs 3,259.88 crore (USD 382.52 million) receiving government clearance. The United Kingdom followed with five proposals worth Rs 2,477.67 crore ($283 million), while Thailand secured approval for two proposals worth Rs 1,600 crore (around $180 million). PRESS NOTE 3 NORMS EASED BUT NOT FOR CHINA In March, the government relaxed certain provisions under Press Note 3 by allowing investments through the automatic route where beneficial ownership from land-border countries does not exceed 10 per cent, subject to sectoral caps and other conditions.

However, the relaxation does not apply to entities registered in China, Hong Kong, or any other country sharing a land border with India. Such investments continue to require prior government approval. India shares land borders with China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. CHINESE FDI REMAINS LIMITED According to DPIIT data, China has never been a major source of FDI into India. Between April 2000 and March 2026, Chinese investments accounted for just 0.32 per cent of India's total FDI equity inflows, amounting to $2.51 billion (Rs 16,162.25 crore), placing China 23rd among investing countries.

Hong Kong ranked 15th, contributing $4.91 billion (Rs 31,220.30 crore), or 0.62 per cent of total FDI equity inflows during the same period. The trend was similar in 2024-25, when India also approved only one Chinese FDI proposal, valued at Rs 28.71 crore. During that financial year, 82 proposals worth Rs 39,758 crore ($4.72 billion) were cleared under the government route, including 11 proposals from Hong Kong worth Rs 1,225.28 crore. Ends