New Delhi, March 17 -- India has eased investment rules for countries with which it shares a land border, clearing the way for China-backed foreign direct investment (FDI) into the country.

On 10 March 2026, the government relaxed Press Note 3 by allowing investments where Chinese shareholding is below 10% and carries no management control or board representation to enter through the automatic route. For larger Chinese investments in critical manufacturing sectors such as electronics and solar components, a 60-day fast-track approval mechanism has been introduced.

The move is significant for three reasons.

First, India remains heavily dependent on Chinese supply chains for key industrial components, reflected in a trade deficit of near...