<p>New Delhi: The government on Tuesday eased norms for <a href="https://www.deccanherald.com/tags/foreign-direct-investment">foreign direct investment</a> (FDI) from all countries, including <a href="https://www.deccanherald.com/tags/china">China</a>, that share land borders with India, sources said.</p><p>They said press note 3 of 2020 has been amended in this regard.</p><p>The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister <a href="https://www.deccanherald.com/tags/narendra-modi">Narendra Modi</a>.</p><p>However, Information and Broadcasting Minister <a href="https://www.deccanherald.com/tags/ashwini-vaishnaw">Ashwini Vaishnaw</a> did not make any announcements in this regard during the media briefing on cabinet decisions.</p><p>The department for promotion of industry and internal trade (DPIIT) said that "no such announcement has been made by the Cabinet today".</p><p>DPIIT is an arm of the commerce and industry ministry which deals with issues related to FDI.</p><p>Under the press note 3, foreign companies having shareholders from countries sharing land borders with India are required to obtain mandatory government approval for investments in any sector.</p><p>Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.</p>.India is resigned to a new status quo with China.<p>China stands at the 23rd position with only 0.32 per cent share (USD 2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025.</p><p>Ties between the two countries nosedived significantly following the fierce clash in Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades.</p><p>Following these tensions, India banned over 200 Chinese mobile apps like TikTok, WeChat, and Alibaba's UC browser.</p><p>Though India has received minimal FDI from China, bilateral trade between the two nations has grown multi-fold.</p><p>China has emerged as the second-largest trading partner of India.</p><p>In 2024-25, India's exports to China contracted 14.5 per cent to $14.25 billion as against $16.66 billion in 2023-24. Imports, however, rose 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24. The trade deficit was widened to $99.2 billion in 2024-25 from $85 billion in 2023-24.</p><p>During April-January 2025-26, India's exports to China rose 38.37 per cent to $15.88 billion, while imports rose 13.82 per cent to $108.18 billion. The trade deficit stood at $92.3 billion.</p>
<p>New Delhi: The government on Tuesday eased norms for <a href="https://www.deccanherald.com/tags/foreign-direct-investment">foreign direct investment</a> (FDI) from all countries, including <a href="https://www.deccanherald.com/tags/china">China</a>, that share land borders with India, sources said.</p><p>They said press note 3 of 2020 has been amended in this regard.</p><p>The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister <a href="https://www.deccanherald.com/tags/narendra-modi">Narendra Modi</a>.</p><p>However, Information and Broadcasting Minister <a href="https://www.deccanherald.com/tags/ashwini-vaishnaw">Ashwini Vaishnaw</a> did not make any announcements in this regard during the media briefing on cabinet decisions.</p><p>The department for promotion of industry and internal trade (DPIIT) said that "no such announcement has been made by the Cabinet today".</p><p>DPIIT is an arm of the commerce and industry ministry which deals with issues related to FDI.</p><p>Under the press note 3, foreign companies having shareholders from countries sharing land borders with India are required to obtain mandatory government approval for investments in any sector.</p><p>Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.</p>.India is resigned to a new status quo with China.<p>China stands at the 23rd position with only 0.32 per cent share (USD 2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025.</p><p>Ties between the two countries nosedived significantly following the fierce clash in Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades.</p><p>Following these tensions, India banned over 200 Chinese mobile apps like TikTok, WeChat, and Alibaba's UC browser.</p><p>Though India has received minimal FDI from China, bilateral trade between the two nations has grown multi-fold.</p><p>China has emerged as the second-largest trading partner of India.</p><p>In 2024-25, India's exports to China contracted 14.5 per cent to $14.25 billion as against $16.66 billion in 2023-24. Imports, however, rose 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24. The trade deficit was widened to $99.2 billion in 2024-25 from $85 billion in 2023-24.</p><p>During April-January 2025-26, India's exports to China rose 38.37 per cent to $15.88 billion, while imports rose 13.82 per cent to $108.18 billion. The trade deficit stood at $92.3 billion.</p>