Brief by Shorts91 Newsdesk / 05:41pm on 21 Aug 2026,Friday India Global
India’s decision to allow overseas companies with up to 10% Chinese shareholding to invest through the automatic route has begun yielding results, with 29 FDI proposals totalling about Rs 4,895.65 crore reported so far. The Finance Ministry notified the changes under FEMA on May 1, 2026. Investments span information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres and transport services. Investors are based in Mauritius, the US, Korea, Japan, Singapore, Luxembourg and the Cayman Islands. The revised framework removes prior government approval in eligible cases, reducing transaction time and providing greater certainty. However, the relaxed rules exclude entities registered in China, Hong Kong and other countries sharing land borders with India. (PC: The Economic Times)
