Business Standard

China FDI proposals for up to 25% equity may get automatic approval

Sensitive sectors to remain under approval route

Chinese FDI, investments, China

Large FDI proposals, involving more than 25 per cent of Chinese investment, may undergo scrutiny at multiple levels to examine the veracity and contours of proposals, the official said

Shrimi Choudhary New Delhi
The government is looking at easing restrictions for Chinese foreign direct investment (FDI) by allowing companies from the bordering country to invest up to 25 per cent in a company through automatic route. This is being discussed only for non-sensitive sectors such as manufacturing, automobile, services and technology.

“We are deliberating on reverting FDI of certain percentage to the automatic route coming from land bordering nations including China. However, that could only be for sectors where 100 per cent FDI is allowed under the automatic route and pose no risk to national security,” said a government official privy to the

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First Published: Feb 24 2021 | 6:10 AM IST

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