New Delhi | August 4, 2026
India FDI Rules 2026: Government Approves ₹10,292 Crore in Foreign Investments, China Receives Clearance for Only ₹1 Crore
India FDI Rules 2026 remained firmly focused on national security as the Government of India approved 63 foreign direct investment (FDI) proposals worth ₹10,292.67 crore during the financial year 2025-26, while granting approval to only one Chinese investment proposal valued at ₹1 crore.
Official data released by the Department for Promotion of Industry and Internal Trade (DPIIT) shows that India continues to welcome overseas investments while maintaining stricter scrutiny for proposals originating from neighboring countries under the Press Note 3 framework introduced in 2020.
Only One Chinese FDI Proposal Approved
According to government figures, only one FDI proposal from China, worth ₹1 crore, was approved between April 2025 and March 2026.
The number remains almost unchanged from the previous financial year (FY2024-25), when India approved only one Chinese investment proposal worth ₹28.71 crore.
The data highlights India’s continued cautious approach toward investments originating from China.
Hong Kong Secures 13 Investment Approvals
While approvals from mainland China remained minimal, Hong Kong received significantly greater clearance.
During FY2025-26:
- 13 FDI proposals from Hong Kong were approved.
- Total approved investment: ₹610.42 crore
This places Hong Kong well ahead of mainland China in terms of approved investments during the year.
Singapore Emerges as the Largest Approved Investor
Among all countries receiving investment approvals, Singapore ranked first by value.
Government data shows:
- 5 approved investment proposals
- Total investment: ₹3,259.88 crore
Singapore continues to remain one of India’s most important sources of foreign direct investment.
China’s Overall Share in India’s FDI Remains Limited
Government statistics indicate that China’s contribution to India’s cumulative foreign direct investment remains relatively small.
Between April 2000 and March 2026:
- Total Chinese FDI: US$2.51 billion (approximately ₹16,162 crore)
- Share of cumulative FDI: 0.32%
- Ranking among investing countries: 23rd
During the same period, Hong Kong accounted for:
- US$4.91 billion (approximately ₹31,220 crore)
- Share of cumulative FDI: 0.62%
- Ranking: 15th
Why India Tightened FDI Rules
India significantly strengthened its foreign investment approval process in 2020 following the Galwan Valley military clash between Indian and Chinese troops.
The revised policy, implemented through Press Note 3, requires prior government approval for investments originating from countries that share a land border with India.
The rule applies to investments from:
- China
- Pakistan
- Bangladesh
- Nepal
- Bhutan
- Myanmar
- Afghanistan
The government introduced these safeguards to protect national security and prevent opportunistic acquisitions of financially vulnerable Indian companies during the COVID-19 pandemic.
Before the policy change, many such investments could be approved through departmental or state-level mechanisms without mandatory central government clearance.
Government Continues Security-Focused Investment Policy
Officials maintain that India’s investment framework strikes a balance between encouraging foreign capital and safeguarding strategic national interests.
The latest figures suggest that while India remains an attractive destination for global investors, proposals from neighboring countries continue to undergo enhanced regulatory scrutiny.
Key Highlights
- India approved 63 FDI proposals worth ₹10,292.67 crore during FY2025-26.
- Only one Chinese investment proposal worth ₹1 crore received approval.
- Hong Kong secured 13 approvals totaling ₹610.42 crore.
- Singapore emerged as the largest approved investor with ₹3,259.88 crore.
- China’s cumulative share in India’s total FDI since 2000 stands at 0.32%.
- Investments from neighboring countries continue to require prior government approval under Press Note 3.
Reference Links
- Department for Promotion of Industry and Internal Trade (DPIIT): https://dpiit.gov.in
- Invest India: https://www.investindia.gov.in
- Ministry of Commerce & Industry: https://commerce.gov.in
- Press Information Bureau (PIB): https://pib.gov.in
- Reserve Bank of India (FDI Information): https://rbi.org.in
