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India auto-approves up to 10% stakes for neighboring-country investors
The policy change covers 29 FDI proposals worth about $511 million and comes alongside a three-week rise in foreign exchange reserves, including higher foreign-currency assets and gold.
India has decided to auto-approve foreign direct investment proposals from neighboring countries, such as China, for non-controlling stakes of up to 10%, easing a prior process that required full government sign-off tied to a neighboring beneficial owner, according to a report by Yahoo Finance.
The commerce and industry ministry said 29 approved proposals are worth 48.95 billion rupees, or about $511 million, spanning industries including information technology, artificial intelligence, manufacturing, pharmaceuticals, data centers, and transport services.
The government decision in May created an automatic-approval route for land-bordering countries holding non-controlling stakes up to 10%, a shift from earlier rules enacted after the 2020 border clashes.
Separately, the same report pointed to India’s forex reserve increase for the third consecutive week, with foreign-currency assets rising $7.2 billion to $581.9 billion and gold reserves up $2.7 billion to $111.4 billion, supported in part by a foreign-currency deposit and swap scheme launched in June.
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