India Approves Single Rs 1 Crore FDI Proposal From China in FY26 as Hong Kong Secures 13 Cleared Projects

August 2, 2026

India approved only one foreign direct investment proposal from China valued at Rs 1 crore during the 2025-26 financial year, maintaining a minimal share of Chinese capital under strict border investment screening policies. In contrast, 13 investment proposals from Hong Kong totaling Rs 610.42 crore received approval from the Indian government during the same period.

What Happened

Data from the Department for Promotion of Industry and Internal Trade (DPIIT) shows that between April 2025 and March 2026, the Indian government approved a total of 63 foreign direct investment proposals worth Rs 10,292.67 crore ($1.18 billion). These proposals fell under the government clearance route established for countries sharing a land border with India. Out of these, China secured a single approved proposal worth Rs 1 crore, while Hong Kong obtained clearance for 13 proposals. Singapore emerged as the leading source of approved investments during the fiscal year, with five proposals cleared worth Rs 3,259.88 crore ($382.52 million). The United Kingdom followed with five approved proposals worth Rs 2,477.67 crore ($283 million), and Thailand had two proposals cleared valued at Rs 1,600 crore ($180 million).

Key Highlights

India approved 1 Chinese FDI proposal worth Rs 1 crore in FY26, repeating the pattern of FY25 when only 1 proposal worth Rs 28.71 crore ($3.44 million) was cleared.
Hong Kong secured approvals for 13 FDI proposals worth Rs 610.42 crore in FY26, compared to 11 proposals worth Rs 1,225.28 crore ($146.51 million) in FY25.
Overall government-route FDI approvals for FY26 stood at 63 proposals totaling Rs 10,292.67 crore ($1.18 billion), down from 82 proposals worth Rs 39,758 crore ($4.72 billion) in FY25.
Singapore led approved investment values in FY26 with Rs 3,259.88 crore, followed by the UK at Rs 2,477.67 crore and Thailand at Rs 1,600 crore.
Between April 2000 and March 2026, China ranked 23rd among FDI sources in India with $2.51 billion (0.32% share), while Hong Kong ranked 15th with $4.91 billion (0.62% share).

Why This Matters

The low approval numbers reflect the ongoing enforcement of Press Note 3 regulations introduced by DPIIT in April 2020. Enacted during the Covid-19 pandemic, these rules require mandatory prior government approval for foreign direct investment coming from countries sharing a land border with India—namely China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan—to prevent opportunistic acquisitions of domestic firms. Although the government revised provisions in March to permit up to 10% non-controlling beneficial ownership via the automatic route, this relaxation specifically excludes entities registered in China, Hong Kong, or other land-border nations.

What to Watch Next

Market observers and businesses will monitor how government screening protocols evolve for entities registered in border countries and whether overall FDI proposal numbers under the approval route change in future financial reporting cycles.

Frequently Asked Questions

What rules regulate Chinese FDI in India?

Investments from China and other neighboring land-border countries are governed by Press Note 3 rules issued in April 2020 by the DPIIT, requiring prior government clearance for all investments.

How much FDI did China contribute to India historically?

From April 2000 to March 2026, cumulative Chinese FDI inflows into India totaled $2.51 billion (Rs 16,162.25 crore), representing 0.32% of total FDI equity inflows and placing China 23rd overall.

Which country had the highest approved FDI value under the government route in FY26?

Singapore recorded the highest approved investment value with Rs 3,259.88 crore across five proposals in FY26.

Source: Department for Promotion of Industry and Internal Trade (DPIIT) data reported by Times of India.