India approves just 1 Chinese FDI proposal worth ₹1 crore in FY26; 13 from Hong Kong
Official data shows that India approved only one Chinese foreign direct investment proposal in the last fiscal year, while clearing 13 from Hong Kong. These restrictions remain in place under Press Note 3, which requires government approval for investments from countries sharing a land border with India.
Why it matters
The data reflects India's cautious economic stance toward China and its ongoing efforts to regulate foreign investment for national security.
India approved just one Chinese FDI proposal worth ₹1 crore, while clearing 13 applications from Hong Kong worth ₹610.42 crore in the last financial year, according to official data.
These approvals are important as investments from countries sharing a land border with India have been subject to prior government approval since April 2020 under Press Note 3 of the Department for Promotion of Industry and Internal Trade (DPIIT).
The measure was introduced to curb opportunistic takeovers and acquisitions of Indian companies during the COVID-19 pandemic.
Overall, the government has approved 63 FDI (foreign direct investment) proposals worth ₹10,292.67 crore, or $1.18 billion, during April 2025-March 2026, according to the DPIIT data.
Singapore emerged as the largest source of approved FDI proposals in value terms, with five proposals worth ₹3,259.88 crore ($382.52 million) receiving clearance.
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