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India eases FEMA FDI rules allowing up to 10% Chinese stake automatically
Economy
Published on 2 May 2026
Approval no longer needed for certain Chinese-linked investments
India has relaxed foreign investment rules under FEMA, letting overseas firms with up to a 10% Chinese ownership invest through the automatic route without prior government approval. The immediate change aims to revive foreign capital inflows and comes after restrictions introduced in 2020. The update applies right away for eligible investments, signalling a more open stance.
- Up to 10% Chinese ownership can now qualify for automatic FDI
- No prior government approval required for eligible investments
- Rules are effective immediately under the automatic route
- Move reverses restrictions imposed in 2020
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times