India has approved a singular foreign direct investment (FDI) proposal from China, valued at Rs 1 crore, for the financial year 2025-26. This decision stands out as the government simultaneously cleared 13 proposals from Hong Kong, totalling Rs 610.42 crore. This information has been disclosed through official data by the Department for Promotion of Industry and Internal Trade (DPIIT), according to reports from PTI.

The stringent regulations regarding investments from nations that share a land border with India continue to be enforced. Under Press Note 3, introduced in April 2020, foreign investments from these nations require prior government approval. This measure was implemented to deter opportunistic takeovers of Indian companies during the COVID-19 pandemic.

In total, during the period from April 2025 to March 2026, the government sanctioned 63 FDI proposals which were valued at Rs 10,292.67 crore (approximately $1.18 billion) through the official approval route.

Singapore Leads in Investment Approvals

Singapore has emerged as the leading source of approved FDI proposals by monetary value, with five proposals amounting to Rs 3,259.88 crore (around $382.52 million) receiving government endorsement. Following closely, the United Kingdom also secured approval for five proposals valued at Rs 2,477.67 crore (approximately $283 million).

Additionally, Thailand received clearance for two investment proposals totalling Rs 1,600 crore (around $180 million). These figures illustrate a diverse range of investment sources, highlighting the robust interest from various international investors in India’s market.

Despite the easing of certain norms under Press Note 3, the relaxation does not extend to entities registered in China, Hong Kong, or other countries sharing a land border with India, which still necessitate prior governmental approval for investments.

Chinese FDI Remains Minimal

Data from the DPIIT reveals that China has not been a significant contributor of FDI into India historically. From April 2000 to March 2026, Chinese investments comprised merely 0.32 per cent of India’s total FDI equity inflows, amounting to $2.51 billion (approximately Rs 16,162.25 crore). This positions China as the 23rd largest investor in the country.

In contrast, Hong Kong ranked 15th among investing nations, contributing $4.91 billion (about Rs 31,220.30 crore), which translates to 0.62 per cent of the total FDI equity inflows during the same timeframe. The limited presence of Chinese investments is a notable trend that has persisted over the preceding years.

During the financial year 2024-25, India approved only one FDI proposal from China, valued at Rs 28.71 crore. That year, a total of 82 proposals worth Rs 39,758 crore ($4.72 billion) were cleared through the governmental approval route, which included 11 successful proposals from Hong Kong worth Rs 1,225.28 crore.

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