India Draws 29 FDI Proposals Worth Rs 4,895.65 Crore After 10% China Rule Easing
Updated
Updated · The New Indian Express · Aug 22
India Draws 29 FDI Proposals Worth Rs 4,895.65 Crore After 10% China Rule Easing
3 articles · Updated · The New Indian Express · Aug 22
Summary
Twenty-nine FDI proposals worth Rs 4,895.65 crore had reached India by Aug. 20, months after New Delhi relaxed rules for investments with up to 10% Chinese beneficial ownership.
The March change removed prior-approval requirements for such investments if they meet sectoral caps and entry rules, shifting investors to a reporting-based regime intended to speed transactions and add certainty.
The proposals span IT, AI, manufacturing, pharmaceuticals, data centres and transport services, with investors also linked to Mauritius, the US, South Korea, Japan, Singapore, Luxembourg and the Cayman Islands.
Press Note 2 of 2026, notified through amended FEMA rules on May 1, applies the beneficial-ownership test at the investor-entity level, replacing a stricter 2020 framework that captured even small Chinese-linked stakes.
About 600 proposals from countries sharing a land border with India still await approval, while the government is weighing a broader fast-track list beyond seven sectors to support manufacturing and technology investment.