India approved just one foreign direct investment proposal from China worth Rs 1 crore during the 2025-26 financial year, while clearing 13 proposals from Hong Kong with a combined investment of Rs 610.42 crore, according to official data from the Department for Promotion of Industry and Internal Trade.
The approvals come under the government's Press Note 3 framework, introduced in April 2020, which requires prior government approval for investments from countries sharing a land border with India. The policy was brought in during the Covid-19 pandemic to prevent opportunistic takeovers and acquisitions of Indian companies.
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Overall, the government approved 63 FDI proposals worth Rs 10,292.67 crore (about $1.18 billion) between April 2025 and March 2026, the DPIIT data showed.
Among all countries, Singapore accounted for the highest value of approved proposals, with five investments worth Rs 3,259.88 crore ($382.52 million) receiving clearance. It was followed by the United Kingdom, where five proposals worth Rs 2,477.67 crore ($283 million) were approved, and Thailand, which received approval for two proposals worth Rs 1,600 crore (around $180 million).
In March 2026, the government relaxed some of the provisions under Press Note 3 by allowing investments from land-border countries up to 10% through the automatic route, with non-controlling beneficial ownership, subject to sectoral caps and other conditions.
However, the relaxation does not apply to entities registered in China, Hong Kong, or any other country that shares a land border with India.
The countries covered under the policy include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
Official data also showed that China has never been a major source of FDI into India. Between April 2000 and March 2026, Chinese investments totalled $2.51 billion (Rs 16,162.25 crore), accounting for 0.32% of total FDI equity inflows and placing China 23rd among investing nations.
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Hong Kong ranked 15th, contributing $4.91 billion (Rs 31,220.30 crore), or 0.62% of total FDI equity inflows during the same period.
The latest data also showed a similar trend in the previous financial year. In 2024-25, the government approved only one Chinese FDI proposal, valued at Rs 28.71 crore ($3.44 million).
During that year, 82 proposals worth Rs 39,758 crore ($4.72 billion) were approved under the government route, while the 11 proposals from Hong Kong, worth Rs 1,225.28 crore ($146.51 million), received clearance.
(With PTI Inputs)
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