India’s FDI Landscape: One Chinese Deal Approved, 13 From Hong Kong, Singapore Leads the Pack

When the Ministry of Commerce released its latest foreign‑direct‑investment (FDI) figures for the April‑2025 to March‑2026 period, the headline was hard to miss: India gave the green light to a solitary Chinese proposal, worth a modest ₹1 crore. By contrast, Hong Kong‑based investors walked away with approval for 13 projects, totalling roughly ₹610.42 crore.

The numbers sit inside the broader picture of 63 FDI clearances across the country, amounting to ₹10,292.67 crore (about $1.18 billion). It’s a snapshot that reflects both the lingering caution around land‑border neighbours and the growing appetite for capital from other parts of Asia.

Under the government’s Press Note 3 framework – a rulebook introduced in April 2020 after the pandemic‑driven scramble for Indian assets – any investment coming from a nation that shares a land border with India must first be vetted by the authorities. The list of such neighbours includes China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. The intent, officials say, is to curb opportunistic take‑overs that could otherwise exploit a fragile economy.

While the rule remains firm for China and Hong Kong, a modest easing was announced in March 2026. Investors from border countries who hold a non‑controlling beneficial ownership of up to 10 percent can now use the automatic route – provided they respect the sector‑specific caps. The relaxation, however, deliberately excludes entities registered in China, Hong Kong or any other bordering state.

Looking beyond the border‑country data, Singapore has firmly secured the top spot for approved FDI by value. Five Singapore‑based proposals were cleared, together worth ₹3,259.88 crore (≈ $382.5 million). The United Kingdom follows with five projects amounting to ₹2,477.67 crore (≈ $283 million), while Thailand’s two approvals sum up to about ₹1,600 crore (≈ $180 million).

Historically, China has never been a major source of FDI for India. From April 2000 to March 2026, Chinese investments accounted for just 0.32 percent of total equity inflows – roughly $2.51 billion (₹16,162.25 crore) – placing it 23rd among all investors. Hong Kong, meanwhile, contributed 0.62 percent ($4.91 billion or ₹31,220.30 crore) and ranked 15th.

For the preceding fiscal year (2024‑25), the pattern was similar: a lone Chinese proposal valued at ₹28.71 crore ($3.44 million) and 11 Hong Kong proposals totalling ₹1,225.28 crore ($146.5 million). That year saw a total of 82 government‑route approvals worth ₹39,758 crore ($4.72 billion).

All in all, the data paints a cautious yet selective approach: India is keeping a tight leash on investments from its immediate neighbours while welcoming capital from other Asian economies, especially Singapore, which appears to be the current favourite of Indian policymakers.