The Indian government plans to ease foreign direct investment (FDI) norms for overseas companies with up to 10% Chinese stake, allowing them to invest in India under the automatic route across various sectors. This decision comes after the Union Cabinet approved amendments to press note 3 of 2020, which will soon be notified under the Foreign Exchange Management Act (FEMA). However, the relaxed rules will not apply to entities registered in China, Hong Kong, or other neighboring countries. Additionally, FDI proposals in specified manufacturing sectors, including capital goods and electronic components, will be processed within 60 days. Total FDI inflows reached USD 88.29 billion during April-February 2025-26, showing an increase from the previous fiscal year. The government anticipates that total FDI could reach USD 90 billion in the full fiscal year. The reforms and ongoing economic growth are expected to attract more investments, with Invest India facilitating projects worth over USD 6.1 billion that are projected to create more than 31,000 jobs.