The revised guidelines should help improve the ease of doing business and attract FDI
Automatic-route investment applies only to global entities with up to 10% Chinese ownership; firms registered in China must still seek government approval
India is working to create an indigenous Virtual Asset Lab for detection of unregistered, high-risk offshore virtual asset service providers (oVASPs) by using analytics and web surveillance tools. A Financial Action Task Force (FATF) report, titled 'Understanding and mitigating the risks of offshore virtual asset service providers', gave case studies of India and other countries on how oVASPS are being used for money laundering and supervision being done by the nations. According to the FATF report, some jurisdictions have established structured cooperation with internet service providers, app-store operators and online platforms to disrupt unauthorised oVASPs activity. Giving a case study from India, the FATF report said that FIU-India, along with the Home Ministry, has directed intermediaries (social media platforms, web hosts, internet service providers) to take down website content. "So far, 85 URLs pertaining to unregistered non-compliant oVASPs have been taken down," it ...
Automatic route allowed for stakes below 10%
Overseas companies having Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors; however, the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India, a senior official said on Wednesday. Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector. The Union Cabinet on March 10 made changes in the press note 3 of 2020 in this regard. Under the press note, investors from countries sharing land borders with India had to seek mandatory approval to invest in any sector. "All the restrictions for investors from land bordering countries (LBCs) are still applicable. There is no relaxation so far as entities or investors in LBCs are concerned. This relaxation is only for entities in non-LBCs and having beneficial owners from LBCs below 10 per cent and ...
Analysts said that companies involved in sectors like EV, EMS, auto ancillary, BESS, renewable energy, and specialty chemicals are expected to benefit most from the easing FDI rules
In February 2026, India began easing its restrictions on buying Chinese equipment
The Union Cabinet has reportedly eased FDI norms under Press Note 3, which requires prior government approval for investments from entities in countries sharing a land border with India
The government on Tuesday eased norms for foreign direct investment from all countries, including China, that share land borders with India, sources said. They said press note 3 of 2020 has been amended in this regard. The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. Under this press note, foreign companies having shareholders from these countries required mandatory government approval for investments in India in any sector. Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. China stands at the 23rd position with only 0.32 per cent share (USD 2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025. Ties between the two countries nosedived significantly following the fierce clash in Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades. Following these tensions, India banne
Anup Rau shared his views on FDI, insurance penetration, regulation, bancassurance, and the company's growth plans
Piyush Goyal says China-origin FDI is not banned and approvals will be sped up, as India considers a calibrated relaxation of Press Note 3 norms while advancing a broad FTA agenda
'Too soon to comment on US tariff twist, but India committed to forging more trade deals'
Net FDI remained in negative territory for the fourth consecutive month in December as repatriations rose sharply, even as gross inflows strengthened across key sectors and source countries
These proposals have flowed in under the 'Uttar Pradesh FDI/FCI, Fortune Global 500, and Fortune India 500 Company Investment Promotion Policy 2023', the government said
India's outward FDI stands at $3.42 billion in January 2026, easing from December levels, with equity, loans and guarantees showing mixed trends
Bank stocks rally on India-US trade deal, and hopes of the government raising FDI cap in PSBs to 49 per cent, and relaxing voting rights, believe analysts.
On hiking FDI in PSBs, DFS Secy M Nagaraju says govt is considering raising the FDI cap to 49% from 20% to boost capital; inter-ministerial consultations are underway
Manufacturers still have excess capacity to utilise, hindering new investments
The Economic Survey on Thursday called for a multi-pronged strategy to strengthen the country's investment climate by addressing both structural and cyclical factors, noting that the key challenge going forward is sustaining FDI inflows amid heightened global volatility. It said that the window for action is still open, but it will not remain so indefinitely. There is a need to move decisively to transform the FDI challenge into the next chapter of the economic growth story, it said. Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infrastructure needs. "Proactive reforms are essential to attract more foreign investment," it said adding this approach involves developing a targeted strategy that identifies a specific set of GVC (global value chain) anchors and establishes a state apparatus that collaborates directly with them as partners. The direct engagement will help resolve cross-agency issues and provide
A high-level committee should be set up to review India's trade and Customs regulations, and undertake economic impact analyses of trade agreements