China Secures Only One FDI Approval in India for FY26, While Hong Kong Gains Thirteen Proposals
China’s share in India’s foreign direct investment (FDI) approvals for the fiscal year 2025-26 remained minimal, with only one proposal approved, valued at Rs 1 crore. In contrast, Hong Kong saw 13 proposals approved, totaling Rs 610.42 crore, according to official data. These approvals fall under India’s investment screening rules for countries sharing a land border with India, a policy introduced in April 2020 to prevent opportunistic takeovers during the Covid-19 pandemic.
FDI Approvals Overview
From April 2025 to March 2026, the Indian government approved a total of 63 FDI proposals, amounting to Rs 10,292.67 crore ($1.18 billion). Singapore led the way with five proposals approved, valued at Rs 3,259.88 crore ($382.52 million). The UK followed closely with five proposals worth Rs 2,477.67 crore ($283 million), while Thailand had two proposals approved, totaling Rs 1,600 crore (approximately $180 million).
Changes to Press Note 3
In March, the government revised provisions of Press Note 3, allowing investors from land border countries (LBCs) to invest up to 10% beneficial ownership through the automatic route, subject to certain conditions. However, this relaxation does not apply to entities from China, Hong Kong, or any other country sharing a land border with India, which includes Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
China’s FDI Contribution
Data indicates that China has been a minor player in India’s overall FDI landscape. From April 2000 to March 2026, China ranked 23rd among FDI sources, contributing only 0.32% of total FDI equity inflows, amounting to $2.51 billion (Rs 16,162.25 crore). In comparison, Hong Kong ranked 15th, with a 0.62% share and cumulative investments of $4.91 billion (Rs 31,220.30 crore). The latest approvals align with the previous fiscal year, where India also approved just one FDI proposal from China, valued at Rs 28.71 crore ($3.44 million).
