India Considering Easing Curbs on Some Chinese Investment, Sources Say
- Govt may allow beneficial ownership upto 10% from such nations
- Over 100 FDI proposals around $6bn stuck as of November 2021
Indian soldiers on the India-China border in Arunachal Pradesh state in October.
Photographer: Money Sharma/AFP/Getty Images
India is considering easing scrutiny on certain foreign direct investment, according to people familiar with the matter, after rules mainly aimed at China created a bottleneck for inflows.
Currently, Prime Minister Narendra Modi’s government scrutinizes all investment proposals from companies that are either based in countries that share a land border with India or have an investor from one of these nations. It is now considering exempting proposals where the so-called beneficial ownership is less than 10%, which means the investor may be from a neighboring country but holds only a small stake in the firm proposing the investment.