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Easing of 10% rule on Chinese stake attracts FDI worth ₹4,896 crore

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Easing of 10% rule on Chinese stake attracts FDI worth ₹4,896 crore

Home / Economy / News / Easing of 10% rule on Chinese stake attracts FDI worth ₹4,896 crore

Easing of 10% rule on Chinese stake attracts FDI worth ₹4,896 crore

Investments span sectors including information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services, government says

Krity Ambey 3 min read Last Updated : Aug 21 2026 | 10:48 PM IST

India received foreign direct investment (FDI) worth Rs 4,896 crore in 29 projects as of August 20 after the government in May eased FDI norms under Press Note 2 of 2026 that allowed investment, without government approval, from entities having non-controlling land-bordering country (LBC) ownership of up to 10 per cent.

“These investments span a range of sectors, including Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres and Transport Services, among others,” the Ministry of Commerce and Industry said in a press statement on Friday. “The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands.”

Previously, investments from entities based in any other country having beneficial ownership of even 1 per cent by companies based in land-bordering countries were subject to government approval under Press Note 3 of 2020.

In 2020, India had mandated government approval for all investments from entities based in land-bordering countries, as well as entities based out of any other country that had ownership by companies based in land-bordering countries. But this had been a long-standing concern among investors seeking greater clarity and ease of investment.


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