India's New FDI Route Attracts Billions: A Global Investor Magnet

India has received 29 foreign direct investment proposals totaling 48.95 billion rupees under a new automatic route. This allows investors from land-bordering countries, such as China, to hold non-controlling stakes up to 10%. The investments cover sectors like IT, AI, manufacturing, pharmaceuticals, data centers, and transport.

India's newly introduced automatic route for foreign direct investments has attracted 29 proposals totaling 48.95 billion rupees, or approximately $511.5 million. This initiative, announced on Friday, facilitates investment from land-bordering nations, including China, allowing non-controlling stakes up to 10%, the Indian government stated.

The investments span critical sectors such as information technology, artificial intelligence, manufacturing, pharmaceuticals, data centers, and transport services, according to India's commerce and industry ministry. This move reflects an early utilization of the rules eased this May, aimed at reducing approval hurdles for investments from countries sharing a land border with India.

Under this framework, investors with stake ownership up to 10% from land-bordering countries can proceed via the automatic route, respecting sectoral limitations. Previously, any foreign investment with beneficial ownership linked to these countries required governmental clearance, even for minimal stakes, a policy effective since 2020.