New Delhi, March 10 The government on Tuesday eased norms for foreign direct investment from all countries, including China, that share land borders with India, sources said.
They said that Press Note 3 of 2020 has been amended in this regard.
The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.
Under this press note, foreign companies having shareholders from these countries were required to obtain mandatory government approval for investments in India in any sector.
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
China holds the 23rd position with only 0.32 per cent share (USD 2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025.
Ties between the two countries have significantly deteriorated following the fierce clash in the Galwan Valley in June 2020, which marked the most serious military conflict between the two sides in decades.
Following these tensions, India banned over 200 Chinese mobile apps, such as TikTok, WeChat, and Alibaba's UC browser.
Although India has received minimal FDI from China, bilateral trade between the two nations has grown significantly.
China has emerged as the second-largest trading partner of India.
In 2024-25, India's exports to China contracted by 14.5 per cent to USD 14.25 billion, compared to USD 16.66 billion in 2023-24. However, imports rose by 11.52 per cent in 2024-25 to USD 113.45 billion, compared to USD 101.73 billion in 2023-24. The trade deficit widened to USD 99.2 billion in 2024-25 from USD 85 billion in 2023-24.
During April-January 2025-26, India's exports to China rose by 38.37 per cent to USD 15.88 billion, while imports rose by 13.82 per cent to USD 108.18 billion. The trade deficit stood at USD 0.23 billion.