China-linked FDI approvals fall to ₹1 crore in FY26 as India eases minority-shareholding rules
Chinese FDI approvals dropped from ₹28.72 crore in FY25 to ₹1 crore in FY26 under Press Note 3 scrutiny. India has since allowed Chinese or Hong Kong shareholding of up to 10% through the automatic route where no control is involved, a potential capital-access opening for consumer and retail businesses.
What happened
Government of India · Chinese FDI approvals in India fell to Rs 1 crore in FY26 under Press Note 3 scrutiny. Recent easing permits up to 10% Chinese or Hong
Key facts
- Chinese FDI approval: Rs 1 crore ($0.11 million) in FY26
- 63 government-route proposals worth Rs 10,292 crore ($1.17 billion) approved in FY26
- Chinese FDI approval: Rs 28.72 crore ($3.44 million) in FY25
- 82 government-route proposals worth Rs 39,758 crore ($4.72 billion) in FY25
- 13 Hong Kong proposals worth Rs 610 crore approved in FY26
- Chinese/Hong Kong shareholding up to 10% can use automatic route if there is no control
- FY26 total FDI equity inflows: $58.8 billion
Why this matters
Structure minority fundraising, joint ventures, and strategic partnerships to keep Chinese or Hong Kong ownership at or below 10% without control rights if seeking the automatic route.