The Department for Promotion of Industry and Internal Trade (DPIIT) had issued a Press Note in March notifying the changes in the FDI policy to ease investment from countries which share a land border with India wherein foreign companies having a Chinese shareholding of up to 10% will be eligible to invest in the country under the automatic route across sectors.
The changes will come into effect after the DEA‘s notification.
“The DEA will have to issue the notification under FEMA. It will be notified very soon. It requires a lot of fine-tuning,” said DPIIT joint secretary Jai Prakash Shivahare, adding that the DEA is doing stakeholder consultations on the issue
The DPIIT has received inputs from the ministries of heavy industries, new and renewable energy, and electronics and IT.
Separately, the DPIIT is working to identify sub-sectors whose applications will be processed within 60 days. These sub sectors would be from the broad segments of capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer or any other sector/activity added by the committee of secretaries headed by the cabinet secretary.
FDI growth
The total FDI in India has crossed $88 billion during April-February FY26, and is likely to reach $90 billion in FY26, said DPIIT secretary Amardeep Singh Bhatia.”The government has taken a series of measures to attract FDI…. Reform measures, free trade agreements and fast-growing economic growth are helping the country to attract healthy investments,” Bhatia said. Gross FDI into India in April-February FY26 was $88.3 billion, up from $80.61 billion in full fiscal FY25 while net FDI increased to $6.2 billion from $959 million in the same period.
Nivruti Rai, CEO and MD of Invest India said China received $116 billion in FDI in FY26 while the US got $300 billion.