Rising repatriation is outpacing overseas spending.
Many have scaled down operations in recent years
Net FDI stood at negative $1.39 billion in January 2026 compared to negative $492 million in December 2025
The amendments to the 'Press Note 3' by the government will help China increase its share in the overall foreign direct investments attracted by India to 2 per cent levels, a report said on Monday. "The change in the rule is expected to increase the share of Chinese funds in overall FDI to more than 2 per cent, the level it stood at before the Press Note 3," the report by Crisil Intelligence said. Between calendar years 2014 and 2019, cumulative FDI inflows from China, including Hong Kong, accounted for about 2 per cent of total FDI, which contracted to 0.27 per cent after the introduction of new rules in Press Note 3. Easing of Press Note 3 norms is expected to unlock a pipeline of pending proposals, potentially driving a near-term uptick in inflows from China, including Hong Kong, it said. The entity expects the government move to accelerate FDI inflows into India, strengthening its domestic capabilities and reducing reliance on imports. The government first introduced the rules
Overseas investment declines year-on-year and sequentially, with moderation in equity commitments and mixed trends in loans and guarantees
The government has amended Press Note 3 under the FDI policy, allowing investors from countries sharing land borders with India to hold up to 10 per cent non controlling stakes via the automatic route
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