Thursday 12 / March / 2026
New Delhi : In a significant decision, the Union Cabinet chaired by Prime Minister Narendra Modi, has approved changes in guidelines on investments from countries sharing land border with India (LBCs), including China.
An official release said on Tuesday that the Cabinet approved changes in FDI policy to provide for a definitive timeline for investments in critical sectors requiring approval under PN3 (Press Note 3).
It said the amendments in the FDI Policy aim to unlock greater FDI inflows from global funds for startups and deep techs, take forward the agenda of ease of doing business.
An expeditious decision in 60 days would help companies enter into collaborations to expand manufacturing in India, the release said.
It said a 60-day decision or approval timeline would help companies enter into joint ventures to access technologies, and integrate with global supply chains
The changes in FDI policy for investments from Land Bordering Countries will help manufacturing in electronic components, capital goods and solar cells, the release said.
A timeline of events since a deadly border clash between the two nuclear-armed Asian nations jolted commercial and diplomatic ties in 2020.
April, 2020 - India introduces heightened scrutiny for all investments from nations it shares a land border with, including China. New Delhi says the move is to curb opportunistic takeovers of Indian companies during the COVID-19 pandemic.
June, 2020 - India bans 59 mostly Chinese apps, including TikTok, WeChat, and UC Browser, citing national security concerns.
July, 2022 - China's Great Wall Motor shelves plans to invest $1 billion in India after failing to obtain regulatory approvals, becoming one of the biggest casualties of New Delhi's increased scrutiny of investments from Beijing.
July, 2023 - India rejects a $1 billion investment proposal by Chinese automaker BYD amid continued security concerns.
October, 2024 - India and China reach a deal on patrolling their disputed frontier to end a four-year military stand-off.
July, 2025 - India's top government think tank, NITI Aayog, proposes allowing Chinese companies to take up to a 24 per cent stake in Indian firms without security clearance, aiming to reduce delays caused by the post-2020 scrutiny regime.
August, 2025 - Indian Prime Minister Narendra Modi visits China for the first time in over seven years, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise.
October, 2025 - India and China to resume direct flights after a five-year freeze.
December, 2025 - India frees
