Archive · 1 Dec 2025
India Considers Easing Investment Curbs on China
A special committee in India has suggested that the government should either remove or relax the rules that stop investments from China.
Right now, India requires government approval for any investment from countries that share a land border, like China.
The committee has two ideas: one is to completely remove these rules, and the other is to allow investments where the investor owns less than 10% of the company.
They also suggest allowing up to 49% investment in non-important sectors, but with government approval.
This change could help India get more foreign investment and boost exports to China.
The government is expected to make a decision by the end of December.
A high-level committee recommended either withdrawing or relaxing investment restrictions from China.
Two options proposed: completely remove restrictions or allow investments with less than 10% beneficial ownership.
Up to 49% cumulative investment allowed in non-strategic sectors with Cabinet Secretary approval.
Current FDI from China stands at $0.91 million for January-June 2025.
Decision expected by December 31, 2024.
- Who
- High-level committee headed by NITI Aayog member Rajiv Gauba
- What
- Recommended easing or withdrawing investment restrictions from China
- When
- Report finalized in October, decision expected by December 31
- Where
- India
- Why
- To integrate with global value chains and boost exports to China
- Committee
- High-level committee on non-financial regulatory reforms
- Options
- Withdraw Press Note 3 or relax restrictions with 10% beneficial ownership threshold
- Non-Strategic Sectors
- Up to 49% cumulative investment allowed with Cabinet Secretary approval
- Strategic Sectors
- Telecom, power, space, defence, petroleum, and sectors crucial for national security
