India approves 1 Chinese and 13 Hong Kong FDI proposals in FY26

India clears one China FDI proposal as Hong Kong gets in FY

India approved only one Chinese FDI proposal worth one crore rupees in 2025-26. Hong Kong received approvals for thirteen proposals totaling six hundred ten crore rupees. Singapore led approved investment values with three thousand two hundred fifty-nine crore rupees. The UK and Thailand also saw significant investment approvals during this period. China's overall FDI contribution to India remains notably small.

India approved just one foreign direct investment (FDI) proposal from China worth Rs 1 crore during FY26, while clearing 13 proposals from Hong Kong with a combined investment of Rs 610.42 crore, according to official data.The approvals come under the government's Press Note 3 regime, introduced in April 2020, which mandates prior government approval for investments from countries sharing a land border with India. The measure was brought in during the Covid-19 pandemic to prevent opportunistic takeovers and acquisitions of Indian companies.Overall, the government approved 63 FDI proposals worth Rs 10,292.67 crore (about $1.18 billion) between April 2025 and March 2026, data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.Singapore emerged as the largest source of approved FDI in value terms, with five proposals worth Rs 3,259.88 crore receiving government clearance. The UK followed with five proposals valued at Rs 2,477.67 crore, while two proposals from Thailand worth Rs 1,600 crore were also approved.In March this year, the government eased certain provisions of Press Note 3 by allowing investments with up to 10% non-controlling beneficial ownership from land-border countries to qualify under the automatic route, subject to applicable sectoral caps and conditions.However, the relaxation does not apply to entities incorporated in China, Hong Kong or any other country sharing a land border with India. These countries include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.Despite concerns over Chinese investments, India has historically received limited direct FDI from China. Between April 2000 and March 2026, China ranked 23rd among FDI sources, accounting for just 0.32% of total FDI equity inflows into India, with investments worth $2.51 billion (Rs 16,162.25 crore).Hong Kong ranked 15th during the same period, contributing 0.62% of India's cumulative FDI equity inflows, amounting to $4.91 billion (Rs 31,220.30 crore).The latest figures are broadly in line with the previous financial year. In FY25, India had also approved only one Chinese FDI proposal, valued at Rs 28.71 crore. Overall, the government cleared 82 proposals under the approval route that year, involving investments worth Rs 39,758 crore.Hong Kong, meanwhile, received approval for 11 proposals worth Rs 1,225.28 crore in FY25.(With inputs from PTI)

The government approved one Chinese investment proposal worth Rs 1 crore and 13 applications from Hong Kong worth Rs 610.42 crore during FY26, according to DPIIT data.

These approvals are crucial, as investments from countries sharing a land border with India have required prior government approval since April 2020 under DPIIT’s Press Note 3