New Delhi, Aug. 30 -- India is considering a significant shift in its foreign direct investment (FDI) policy by relaxing rules for Chinese investments in specific sectors.

The proposal aims to allow20-25% FDI through the automatic routein non-sensitive areas such asmanufacturing, renewable energy, and auto components.

Currently, underPress Note 3 (2020), investments from countries sharing land borders with India, particularly China, require prior government approval.

This rule was introduced after the COVID-19 outbreak and escalating border tensions, to prevent opportunistic acquisitions of Indian firms.

Officials now suggest a more balanced approach. While strategic sectors likedefence, telecom, energy exploration, and sensitive inst...