India opens door to more Chinese investment after 6-year freeze

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After a six-year freeze, India has eased restrictions on Chinese investments in select sectors to attract foreign capital and improve economic relations. The new regulations introduce a fast-track approval process for investments from land-bordering countries, including China, in sectors like capital goods, electronics, and solar components. Investments will be processed within 60 days if Indian residents maintain majority shareholdings. Investors with non-controlling beneficial ownership of up to 10% will receive automatic clearance, subject to regulatory conditions. The move amends the 2020 Press Note 3, which mandated government scrutiny for all investments from bordering nations to prevent opportunistic takeovers during the pandemic.
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