India eases FDI rules, allows firms with up to 10% Chinese shareholding under automatic route

Department for Promotion of Industry and Internal Trade (DPIIT) on Monday notified changes in the FDI policy to permit overseas companies with Chinese shareholding of up to 10 per cent to invest in India under the automatic route. These investments will be subject to sectoral FDI (foreign direct investment) limits and conditions. However, the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India. Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any…