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India Relaxes FDI Rules, Potentially Paving Way for Higher Chinese Investment
- On Tuesday, the government eased foreign direct investment rules for countries sharing land borders with India, including China, in a move approved by the Union Cabinet chaired by Prime Minister Narendra Modi.
- China accounts for only 0.32 in India’s total FDI from April 2000 to December 2025, while imports rose 11.52% to USD 113.45 billion, widening the trade deficit to USD 99.2 billion in 2024-25.
- Amending Press Note-3 of 2020, officials altered approval requirements for foreign companies with shareholders from countries sharing a land border, replacing the prior mandatory government approval requirement.
- The amendment could open the door to increased investment from neighbouring countries, including China, as China is one of India’s largest trading partners, despite minimal FDI from China.
- Despite earlier bans on over 200 Chinese apps, New Delhi has eased FDI rules for border-sharing countries, though relations soured after the Galwan Valley clash in June 2020.
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India eases rules on China investment
India eased rules over Chinese investment in local firms, extending the countries’ diplomatic and economic thaw. The curbs were initially enacted in 2020 after a border skirmish escalated tensions between the world’s two most populous nations.The regulations stymied plans by China’s EV giant BYD to make inroads in India, while high profile Chinese investors pulled out of deals involving Indian startups. But relations have gradually improved — di…
·New York, United States
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Coverage Details
Total News Sources38
Leaning Left4Leaning Right8Center4Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 25%
C 25%
R 50%
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