India opens door to more Chinese investment after 6-year freeze | South China Morning Post

VirtualRichDream · 2026-03-12T08:47:17+00:00

India has eased restrictions on Chinese investments, introducing a fast-track approval process for certain sectors. This change allows quicker processing of investments while ensuring majority Indian ownership, reflecting a thaw in economic relations.

VirtualRichDream

2026-03-12 08:47:17

Abstract generation in progress

India has relaxed curbs on Chinese investments in certain sectors to attract more foreign capital, as Beijing and New Delhi continue to gradually repair their economic relationship after years of tense relations.

In a cabinet statement released on Tuesday, New Delhi introduced a fast-track approval mechanism for investments from land-bordering countries – including China. The move amends a previous restriction that had mandated government scrutiny for all such capital inflows.

Under the new rules, investments in specific sectors – including capital goods, electronics and solar components – will be processed within 60 days, as long as Indian residents hold majority shareholdings over the ventures at all times, according to the statement.

Investors from bordering nations who hold a non-controlling beneficial ownership of up to 10 per cent will be granted automatic clearance, subject to specific regulatory conditions, it added.

“From the perspective of supply chain collaboration, India should welcome Chinese investment,” said Mao Keji, a research fellow at the International Cooperation Centre of China’s National Development and Reform Commission.

Mao said New Delhi might have realised it had been imprudent to shut out Chinese capital for the past several years.

New Delhi first introduced mandatory screening of foreign direct investments from land-bordering countries – a move known as Press Note 3 – in April 2020, which it justified as being necessary to guard against “opportunistic takeovers” during the pandemic.

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