The Indian government is considering simplifying foreign direct investment (FDI) regulations for companies with less than 10 percent Chinese ownership, sources reveal.
This move aims to streamline the application process and reduce paperwork under Press Note 2, making it easier for such entities to invest in India.
This development follows earlier revisions to FDI rules concerning investments from countries sharing land borders with India. While investments from these countries still require government approval in many cases, the proposed changes focus on easing the burden for those with limited Chinese shareholding. The Department for Promotion of Industry and Internal Trade (DPIIT) had updated the framework in March 2026, defining beneficial ownership and reporting requirements.
In related efforts, DPIIT is also finalizing a list of 100 priority products to boost domestic manufacturing and reduce import dependence. Furthermore, to strengthen startup financing, 15 Alternative Investment Funds (AIFs) have been finalized under Fund of Funds 2.0, with Rs 270 crore earmarked for SIDBI. The BHASKAR platform, a Startup Knowledge Registry, is also set for a complete overhaul, expected by mid-2027. These initiatives collectively aim to simplify investment, encourage local production, and support India’s vibrant startup ecosystem.