Under a new automatic route that permits investors from land-bordering nations, including China, to hold non-controlling holdings of up to 10%, India has received 29 applications for foreign direct investment totaling 48.95 billion rupees ($511.5 million), the government announced on Friday.
The reports provide an early look at how investors are using the May regulations that relaxed the standards for permission for businesses from nations that share a land border with India that have limited, non-controlling ownership.
Subject to applicable sectoral caps and other requirements, investors from land-bordering countries, primarily China, with non-controlling ownership of up to 10% may invest through the automatic route under the amended framework.
According to India’s ministry of commerce and industry, the investments cover information technology, artificial intelligence, manufacturing, pharmaceuticals, data centers, and transportation services.
Previously, under regulations implemented in 2020, foreign investors with any beneficial ownership connected to nations that shared a land border with India typically required prior government clearance, even in cases where such ownership was minimal.
“The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands,” the ministry said in a statement.
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