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India Approves Single Chinese FDI Proposal Worth ₹1 Crore in FY26, 13 From Hong Kong

India approved a single Foreign Direct Investment (FDI) proposal from China valued at ₹1 crore during the 2025–26 financial year (April 2025 to March 2026), according to official data from the Department for Promotion of Industry and Internal Trade (DPIIT). Over the same period, 13 investment applications from Hong Kong were cleared, totaling ₹610.42 crore.

These investment decisions fall under the regulatory purview of Press Note 3, which mandates prior government scrutiny for foreign direct investments originating from countries sharing a land border with India.

What Happened

Official DPIIT data shows that between April 2025 and March 2026, the Indian government approved a total of 63 foreign direct investment proposals across all jurisdictions under the government route, worth ₹10,292.67 crore ($1.18 billion).

Among these clearances, Chinese investment was limited to one proposal worth ₹1 crore. This follows a similar trend from the 2024–25 financial year, during which India also approved only one Chinese FDI proposal, valued at ₹28.71 crore ($3.44 million). For Hong Kong, 13 proposals worth ₹610.42 crore were cleared in 2025–26, compared to 11 proposals worth ₹1,225.28 crore ($146.51 million) approved in 2024–25.

In terms of monetary value, Singapore was the largest source of approved FDI proposals in 2025–26, with five proposals worth ₹3,259.88 crore ($382.52 million) receiving clearance. The United Kingdom followed with five approved proposals worth ₹2,477.67 crore ($283 million), while Thailand received clearance for two proposals worth ₹1,600 crore (about $180 million).

Key Highlights

  • Chinese FDI Clearance: India approved 1 Chinese FDI proposal worth ₹1 crore in 2025–26, following 1 proposal worth ₹28.71 crore in 2024–25.
  • Hong Kong FDI Clearance: 13 proposals worth ₹610.42 crore were approved in 2025–26, compared to 11 proposals worth ₹1,225.28 crore in 2024–25.
  • Top Sources by Value (FY26): Singapore led with ₹3,259.88 crore (5 proposals), followed by the UK with ₹2,477.67 crore (5 proposals), and Thailand with ₹1,600 crore (2 proposals).
  • Total Government Route Approvals: Overall FDI approvals under the government route stood at 63 proposals worth ₹10,292.67 crore ($1.18 billion) in 2025–26, down from 82 proposals worth ₹39,758 crore ($4.72 billion) in 2024–25.
  • Historical Position: Between April 2000 and March 2026, China ranked 23rd in total FDI equity inflows to India with $2.51 billion (₹16,162.25 crore), representing 0.32% of total inflows. Hong Kong held 15th position with $4.91 billion (₹31,220.30 crore), or a 0.62% share.

Why This Matters

Since April 2020, investments from countries sharing a land border with India—China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan—have required prior government approval under Press Note 3 of the DPIIT. The measure was originally introduced to prevent opportunistic takeovers and acquisitions of domestic firms during the COVID-19 pandemic.

In March, the government eased aspects of Press Note 3 to permit investors with non-controlling land border country beneficial ownership of up to 10% under the automatic route, subject to applicable sector rules. However, authorities explicitly clarified that these relaxed FDI norms do not apply to entities registered in China, Hong Kong, or other land border nations, leaving them under full government review.

What to Watch Next

Monitoring will continue through future DPIIT reports to trace further investment trends and administrative decisions under the mandatory government approval framework for border country investments.

Frequently Asked Questions

What is Press Note 3?

Press Note 3 is a rule issued by DPIIT in April 2020 requiring prior government approval for FDI from countries that share a land border with India.

Which countries share a land border with India under these rules?

The countries sharing a land border with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.

Do the relaxed FDI norms apply to entities in China or Hong Kong?

No. The government clarified that the relaxed 10% non-controlling beneficial ownership route does not apply to entities registered in China, Hong Kong, or other land border countries.

Source: Department for Promotion of Industry and Internal Trade (DPIIT) official data reported by The Hindu.