India Approves One Chinese FDI Proposal While Hong Kong Sends 13 to the Party

New Delhi: India approved just one foreign direct investment (FDI) proposal from China worth ₹1 crore during the financial year 2025-26, while 13 applications from Hong Kong involving investments worth ₹610.42 crore were cleared, according to official data. The figures highlight a significant difference in both the number and value of investment proposals approved from the two jurisdictions during the year. While the Chinese proposal represented a relatively small investment, the 13 approved applications from Hong Kong together accounted for more than ₹600 crore. Chinese investment remains under closer scrutiny India has maintained a government-approval mechanism for investments from countries that share a land border with the country. The policy was introduced in 2020 amid heightened concerns over foreign investments and strategic assets. Under the framework, investments from countries sharing a land border with India, or where the beneficial owner of an investment is situated in or is a citizen of such a country, require approval through the government route. China has been particularly significant in this context because of its large economic relationship with India, even as investment proposals from Chinese entities have faced greater regulatory scrutiny. The latest FY26 figures show that only one Chinese FDI proposal received approval during the year, with the investment value standing at ₹1 crore. Hong Kong approvals show a different picture The data for Hong Kong presents a markedly different picture. As many as 13 proposals were approved, with their combined investment value reaching ₹610.42 crore. The difference is notable not only in the number of applications but also in the total financial commitment represented by the approved proposals. The Hong Kong approvals were collectively worth more than 600 times the value of the single Chinese proposal approved during the same period. However, the figures should be viewed carefully. The number and value of approved proposals do not necessarily represent the entire flow of investment from a jurisdiction, as actual investment brought into the country can differ from the value proposed or approved by the government. Why FDI approvals matter FDI is an important source of capital for an economy and can contribute to business expansion, employment generation, technology transfer and the development of supply chains. At the same time, governments often apply additional scrutiny to foreign investments in sectors or situations involving national security, critical infrastructure or strategic interests. India's approval framework for investments connected with countries sharing a land border reflects this balance between attracting foreign capital and examining investments on security and policy grounds. China-India economic relationship China remains an important economic partner for India, particularly in areas such as electronics, machinery, chemicals and industrial components. Indian companies also rely on Chinese supply chains for several categories of manufacturing inputs. However, economic engagement has continued alongside increased scrutiny of Chinese investments following tensions between the two countries. The government has therefore sought to maintain investment channels while applying additional checks to proposals that fall under the approval mechanism. What the FY26 numbers indicate The FY26 data provides a snapshot of investment proposals cleared by the government rather than a complete picture of India-China or India-Hong Kong economic relations. The approval of one Chinese proposal worth ₹1 crore indicates a very limited level of Chinese FDI proposals receiving approval during the financial year. In comparison, 13 Hong Kong applications worth ₹610.42 crore received clearance. The difference raises questions about the composition, sector, ownership structure and regulatory status of individual proposals. Those factors can be important in understanding why particular applications receive approval. Looking ahead India's approach to foreign investment is likely to remain focused on balancing economic opportunities with regulatory and strategic considerations. For businesses, clarity and predictability in the approval process remain important, particularly for investments involving jurisdictions subject to additional scrutiny. For policymakers, the challenge is to encourage capital and technology inflows while ensuring that investments are assessed in line with national economic and security priorities. The FY26 figures underline this balancing act. While only one Chinese proposal worth ₹1 crore was approved, Hong Kong saw 13 approvals worth ₹610.42 crore, illustrating the differing investment approval patterns recorded in the official data. Key figures at a glance: Chinese FDI proposals approved: 1 Value of approved Chinese proposal: ₹1 crore Hong Kong proposals approved: 13 Value of Hong Kong approvals: ₹610.42 crore Financial year: FY26 (2025-26) The figures provide an indication of the government's FDI approval activity during FY26, but they should not be interpreted as a direct measure of total investment actually received from China or Hong Kong.