India Eases FDI Norms: Foreign Companies with up to 10% Chinese Shareholding Now Eligible for Automatic Investment Route
β’ India's government approved amendments allowing overseas companies with Chinese or Hong Kong shareholding of up to 10% to invest in India under the automatic route, with notification expected soon under the Foreign Exchange Management Act. β’ The decision was communicated by the government on Thursday and will come into effect following official notification, marking a significant shift in India's foreign direct investment policy toward greater openness. β’ This policy change, approved in March 2026 through amendments to Press Note 3 of 2020, aims to attract increased Chinese investment while maintaining regulatory oversight of strategic sectors.
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