The Finance Ministry of India has officially notified a significant easing of Foreign Direct Investment (FDI) rules, allowing foreign companies with up to 10% Chinese shareholding to invest in India under the automatic route. This decision follows the Union Cabinet's approval in March, which amended Press Note 3 of 2020, previously imposing strict regulations on investments from entities in countries sharing land borders with India, including China and Hong Kong. Under the new guidelines, only beneficial owners will be subject to scrutiny, streamlining the investment process. Despite this change, entities registered in China or Hong Kong remain barred from direct investment. Notably, China accounts for only 0.32% of total FDI equity inflow in India, amounting to approximately $2.51 billion USD from April 2000 to December 2025. Additionally, investments from multilateral banks, of which India is a member, will not be classified as originating from any specific country, further promoting foreign investment while ensuring national security.