Govt has eased FDI norms for foreign cos having small Chinese/Hong Kong stake: An explainer

India has eased Foreign Direct Investment rules for companies with up to ten percent Chinese or Hong Kong shareholding. These firms can now invest in India through the automatic route starting May 1, 2026. This change aims to boost investment flows. Previously, stricter rules applied due to security concerns. The government has also expedited clearances for certain manufacturing sectors.