India Eases FDI Norms: Foreign Companies with up to 10% Chinese Shareholding Now Eligible for Automatic Investment Route
⢠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. ⢠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. ⢠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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