India receives 29 FDI proposals worth $511.5 million under the new policy for neighbours

India has received 29 foreign direct investment proposals worth ​48.95 billion rupees ($511.5 million) under a new automatic ‌route that allows investors from land-bordering countries, including China, to hold non-controlling stakes of up to 10%, the ​government said on Friday.

The investments span information technology, ​artificial intelligence, manufacturing, pharmaceuticals, data centres and ⁠transport services, India’s commerce and industry ministry said.

The ​disclosures offer an early indication of investor use of ​rules introduced in May that eased approval requirements for companies with limited, non-controlling ownership from countries sharing a land ​border with India.

Under the revised framework, investors with ​non-controlling ownership of up to 10% from land-bordering countries, mainly China, ‌may ⁠invest through the automatic route, subject to applicable sectoral caps and other conditions.

Previously, foreign investors with any beneficial ownership linked to countries sharing a land ​border with ​India generally ⁠needed prior government approval under rules introduced in 2020, including where such ownership ​was small.

“The 29 investments have been ​reported by ⁠investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and ⁠the ​Cayman Islands,” the ministry said ​in a statement.