India gets $511.5 million in FDI under new policy for neighbouring countries
NEW DELHI: India has received 29 foreign direct investment proposals worth 48.95 billion rupees ($511.5 million) under a new automatic route that allows investors from land-bordering countries, including China, to hold non-controlling stakes of up to 10%, the government said on Friday. The investments span information technology, artificial intelligence, manufacturing, pharmaceuticals, data…
New Delhi witnessed the arrival of 29 foreign direct investment proposals, amounting to 48.95 billion rupees ($511.5 million), under a recently implemented automatic route, the government announced on Friday. The investments, which cover sectors such as information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres, and transport services, were revealed by India's commerce and industry ministry.
This early indication suggests that investors are utilizing rules introduced in May that have simplified approval procedures for companies with limited, non-controlling ownership from land-bordering countries, primarily China. Under the updated framework, investors holding up to 10% non-controlling stakes from bordering nations can now enter the market via the automatic route, provided they adhere to sectoral limitations and other prerequisites.
Unlike earlier regulations established in 2020, which necessitated prior government approval for any beneficial ownership tied to countries sharing a land border with India, even for small stakes, the revised system now allows for greater flexibility. The ministry disclosed that the reported investments are hailing from jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands.
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