India, March 10 -- India has moved to ease stringent restrictions on foreign direct investment (FDI) from neighbouring nations, including China, signalling a potential thaw in the economic relations six years after a border standoff frayed ties.

The Union Cabinet - chaired by Prime Minister Narendra Modi - has approved amendments to Press Note 3 (2020) on Tuesday, PTI reported on Tuesday citing sources. The original policy, enacted at height of the covid pandemic and following military clashes in the Galwan Valley, mandated prior government clearance for any investment originating from countries sharing a land border with India.

The move marks a significant departure from India's FDI policy for neighbours that had effectively sidelined ...