India approved 63 FDI proposals worth ₹10,292.67 crore during April 2025-March 2026, according to DPIIT data. Business Standard reports that Singapore emerged as the largest source with five proposals worth ₹3,259.88 crore, followed by the UK with five proposals worth ₹2,477.67 crore and Thailand with two proposals worth ₹1,600 crore. These approvals are significant as investments from countries sharing land borders with India have been subject to prior government approval since April 2020 under Press Note 3.
The data reveals stark differences in investment flows from China and Hong Kong. India approved just one Chinese FDI proposal worth ₹1 crore during the last financial year, while clearing 13 applications from Hong Kong valued at ₹610.42 crore. This pattern continues a trend from 2024-25, when India approved only one Chinese proposal worth ₹28.71 crore compared to 11 Hong Kong proposals worth ₹1,225.28 crore. China ranks 23rd globally in FDI equity inflows to India, accounting for only 0.32% share at $2.51 billion between April 2000 and March 2026, while Hong Kong holds the 15th position with 0.62% share at $4.91 billion during the same period.
In March 2026, the government eased Press Note 3 of April 2020, allowing investors with non-controlling beneficial ownership of up to 10% from land border countries under the automatic route, according to applicable sectoral caps and conditions. However, the relaxed norms do not apply to entities registered in China/Hong Kong or other land border countries. Countries sharing land borders with India include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. The regulations were introduced during the Covid-19 pandemic to curb opportunistic takeovers and acquisitions of Indian companies.
The current approval pattern continues a consistent trend of minimal Chinese investment approval. India had approved only one Chinese FDI proposal in 2024-25 also, valued at ₹28.71 crore. In that fiscal year, a total of 82 proposals were approved under the government route, involving a total investment of ₹39,758 crore. The data shows that India has never received significant direct investments from China, with China's share remaining minimal despite the country's economic significance globally. Hong Kong received approvals for 11 proposals worth ₹1,225.28 crore during 2024-25, demonstrating the continued preference for Hong Kong investments over mainland Chinese investments.
