India approved just one Chinese FDI proposal worth ₹1 crore, while clearing 13 applications from Hong Kong worth ₹610.42 crore in the last financial year, according to official data.
These approvals are important as investments from countries sharing a land border with India have been subject to prior government approval since April 2020 under Press Note 3 of the Department for Promotion of Industry and Internal Trade (DPIIT).
The measure was introduced to curb opportunistic takeovers and acquisitions of Indian companies during the COVID-19 pandemic.
Overall, the government has approved 63 FDI (foreign direct investment) proposals worth ₹10,292.67 crore, or $1.18 billion, during April 2025-March 2026, according to the DPIIT data.
Singapore emerged as the largest source of approved FDI proposals in value terms, with five proposals worth ₹3,259.88 crore ($382.52 million) receiving clearance.
This was followed by the UK, where five proposals worth ₹2,477.67 crore ($283 million) were approved, and Thailand, which received approval for two proposals worth ₹1,600 crore (about $180 million).
In March, the government eased Press Note 3 of April 2020. Under that, it stated that investors with non-controlling LBC (land border countries) beneficial ownership of up to 10% would be permitted under the automatic route, according to the applicable sectoral caps, entry routes, and other conditions.
However, it was clarified that the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India.
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
India has never received significant investments directly from China. China ranks 23rd, accounting for only 0.32% of total FDI equity inflows into India between April 2000 and March 2026, at $2.51 billion (₹16,162.25 crore).
On the other hand, Hong Kong was at 15th position with only a 0.62% share ($4.91 billion or ₹31,220.30 crore) in the total FDI equity inflow reported during that period.
Like 2025-26, India had approved only one Chinese FDI proposal in 2024-25 also. It was valued at ₹28.71 crore ($3.44 million). In that fiscal, a total of 82 proposals were approved under the government route, involving a total investment of ₹39,758 crore ($4.72 billion).
From Hong Kong, 11 proposals worth ₹1,225.28 crore ($146.51 million) received approval in 2024-25.
Published - August 03, 2026 05:03 am IST
investments / economy, business and finance / China / Hong Kong
Source: The Hindu - India News
