India has eased foreign direct investment (FDI) norms to attract greater investment from China and other neighbouring countries in select sectors, according to the Union Cabinet, which approved amendments to the investment framework introduced under Press Note 3 of 2020. The move aims to facilitate capital inflows, technology transfer and supply chain integration while maintaining regulatory oversight. Under the revised policy, certain smaller investments and minority stakes from entities linked to neighbouring countries may be allowed through faster approval routes, easing the stringent scrutiny regime imposed after the 2020 India-China border tensions. Industry officials said the calibrated relaxation could help attract investment into manufacturing sectors such as electronics, capital goods and renewable energy equipment, where companies rely heavily on Chinese capital, components and technology. Chinese FDI in India remains relatively limited—about $2.51 billion or 0.32% of total equity inflows between 2000 and 2025, according to a report.
India has eased foreign direct investment (FDI) norms to attract greater investment from China and other neighbouring countries in select sectors, according to the Union Cabinet, which approved amendments to the investment framework introduced under Press Note 3 of 2020. The move aims to facilitate capital inflows, technology transfer and supply chain integration while maintaining regulatory oversight. Under the revised policy, certain smaller investments and minority stakes from entities linked to neighbouring countries may be allowed through faster approval routes, easing the stringent scrutiny regime imposed after the 2020 India-China border tensions. Industry officials said the calibrated relaxation could help attract investment into manufacturing sectors such as electronics, capital goods and renewable energy equipment, where companies rely heavily on Chinese capital, components and technology. Chinese FDI in India remains relatively limited—about $2.51 billion or 0.32% of total equity inflows between 2000 and 2025, according to a report.
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