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India Gets Nearly Rs 5,000 Crore FDI After Easing Rules for Chinese-Linked Firms

The projects span technology, manufacturing and pharmaceuticals as the government says the rule change is meant to speed approvals and improve investor certainty.

  • On Friday, the Commerce Ministry reported that 29 foreign direct investment proposals worth Rs 4,895.65 crore have been filed under India's revised FDI framework.
  • The government amended Press Note 3 of 2020 in March 2026, with the finance ministry notifying changes under FEMA on May 1, 2026, permitting automatic route investments for companies with up to 10% shareholding from land-border countries.
  • Proposals originated from Mauritius, the United States, Japan, Singapore, Luxembourg, and the Cayman Islands, spanning sectors including information technology, manufacturing, artificial intelligence, and transport services.
  • The revised framework removes mandatory prior government approval for qualifying entities, expediting foreign investment flows and strengthening ease of doing business in India, according to officials.
  • However, these relaxed rules do not apply to entities registered in China or Hong Kong, which remain subject to mandatory government approval regardless of ownership levels.
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Times of India broke the news in India on Friday, August 21, 2026.
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