The government of India has relaxed rules governing foreign direct investment (FDI) from countries that share land borders with India, including China. The changes have been made through an amendment to Press Note 3 of 2020.
Under Press Note 3, foreign companies with shareholders from countries sharing land borders with India were earlier required to obtain mandatory government approval for investments in any sector. The countries covered under the rule include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
China currently ranks 23rd among investors in India, with a share of 0.32 per cent, or about $2.51 billion, of the total FDI equity inflows recorded in the country between April 2000 and December 2025.
Despite limited FDI from China, bilateral trade between the two countries has continued to expand significantly.
