During FY 2025–26, India approved only one Foreign Direct Investment

¨     During FY 2025–26, India approved only one Foreign Direct Investment (FDI) proposal from China, valued at ₹1 crore.

¨     In the same period, 13 FDI proposals from Hong Kong were approved, with a total value of ₹610.42 crore.

¨     These proposals were cleared under the Government Route, which requires prior approval from the Government of India.

¨     Foreign Direct Investment (FDI) refers to investment made by a foreign entity in an Indian business through equity participation, ownership, or control.

¨     India allows FDI through two routes: the Automatic Route and the Government Route.

¨     Investments under the Government Route require prior approval from the Union Government.

¨     The Department for Promotion of Industry and Internal Trade (DPIIT) issued Press Note 3 in April 2020.

¨     Under Press Note 3, prior government approval is mandatory for investments from countries that share a land border with India.

¨     The policy applies to investments from China, Pakistan, Nepal, Bhutan, Myanmar, Bangladesh, and Afghanistan.