FDI norms eased for China and border nations

New Delhi: 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.

However, Information and Broadcasting Minister Ashwini Vaishnaw did not make any announcements in this regard during the media briefing on cabinet decisions. The department for promotion of industry and internal trade (DPIIT) said that “no such announcement has been made by the Cabinet today”.

DPIIT is an arm of the commerce and industry ministry which deals with issues related to FDI. Under the press note 3, foreign companies having shareholders from countries sharing land borders with India are required to obtain mandatory government approval for investments 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.