{"id":10881,"date":"2026-04-30T19:18:47","date_gmt":"2026-04-30T13:48:47","guid":{"rendered":"https:\/\/banitoday.com\/govt-likely-to-notify-fema-changes-for-foreign-firms-with-up-to-10-chinese-stake\/"},"modified":"2026-04-30T19:18:47","modified_gmt":"2026-04-30T13:48:47","slug":"govt-likely-to-notify-fema-changes-for-foreign-firms-with-up-to-10-chinese-stake","status":"publish","type":"post","link":"https:\/\/banitoday.com\/hi\/govt-likely-to-notify-fema-changes-for-foreign-firms-with-up-to-10-chinese-stake\/","title":{"rendered":"Govt likely to notify FEMA changes for foreign firms with up to 10% Chinese stake"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-130635477,imgsize-973883,width-400,height-225,resizemode-4\/-.jpg\" alt=\"Govt likely to notify FEMA changes for foreign firms with up to 10% Chinese stake\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>The government is set to soon notify changes under the Foreign Exchange Management Act (FEMA) that will ease foreign direct investment (FDI) norms for overseas companies with up to 10 per cent Chinese shareholding, a senior official told news agency PTI on Thursday.<span class=\"id-r-component br\" data-pos=\"2\"\/>Once notified by the Department of Economic Affairs (DEA), the revised framework will come into effect.<span class=\"id-r-component br\" data-pos=\"4\"\/>The Union Cabinet had in March approved amendments to Press Note 3 of 2020, allowing foreign companies with Chinese ownership of up to 10 per cent to invest in India through the automatic route across sectors.<span class=\"id-r-component br\" data-pos=\"6\"\/>However, the relaxation will not apply to entities registered in China, Hong Kong or any other country sharing a land border with India.<span class=\"id-r-component br\" data-pos=\"10\"\/>\u201cThe DEA will have to issue the notification under FEMA (Foreign Exchange Management Act). It will be notified very soon. It requires a lot of fine-tuning,\u201d DPIIT Joint Secretary Jai Prakash Shivahare told reporters.<span class=\"id-r-component br\" data-pos=\"12\"\/>He added that the government is also identifying sub-sectors whose investment applications will be processed within 60 days.<span class=\"id-r-component br\" data-pos=\"14\"\/>Under the new framework, FDI proposals in specified manufacturing segments such as capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer, along with any other sectors later identified by the committee of secretaries headed by the Cabinet Secretary, will be cleared within 60 days.<span class=\"id-r-component br\" data-pos=\"17\"\/>Though the Department for Promotion of Industry and Internal Trade (DPIIT) has notified the changes, the DEA notification under FEMA is still awaited.<span class=\"id-r-component br\" data-pos=\"19\"\/>Shivahare also said total FDI, including reinvested earnings, rose to USD 88.29 billion during April-February 2025-26, compared with USD 80.61 billion in 2024-25.<span class=\"id-r-component br\" data-pos=\"21\"\/>Net FDI into the country increased sharply to USD 6.26 billion during April-February 2025-26, against USD 959 million in the full 2024-25 fiscal.<span class=\"id-r-component br\" data-pos=\"24\"\/>Separately, DPIIT Secretary Amardeep Singh Bhatia said overall FDI inflows are likely to touch USD 90 billion in the full 2025-26 fiscal year.<span class=\"id-r-component br\" data-pos=\"26\"\/>He said reform measures, free trade agreements and India\u2019s fast economic growth are helping attract healthy investments.<span class=\"id-r-component br\" data-pos=\"28\"\/>The department also said Invest India, the national investment promotion and facilitation agency, helped ground 60 projects worth over USD 6.1 billion during 2025-26.<span class=\"id-r-component br\" data-pos=\"31\"\/>These investments span 14 states and are estimated to generate more than 31,000 potential jobs.<span class=\"id-r-component br\" data-pos=\"33\"\/>About 42 per cent of the total grounded investment value has come from European nations.<span class=\"id-r-component br\" data-pos=\"35\"\/>Continued participation from the United States, Japan, South Korea, Australia and other major source markets reflects broad-based international confidence in India\u2019s regulatory environment and manufacturing capabilities.<span class=\"id-r-component br\" data-pos=\"38\"\/>Emerging source countries such as Brazil, New Zealand and Canada also indicate diversification of India\u2019s investment base.<span class=\"id-r-component br\" data-pos=\"40\"\/>\u201cIndia&#8217;s investment momentum is a direct outcome of policy clarity, institutional commitment, and the trust global investors place in our systems,\u201d Bhatia said.<span class=\"id-r-component br\" data-pos=\"42\"\/>Invest India MD and CEO Nivruti Rai told PTI that chemicals, pharmaceuticals, biotechnology and food processing accounted for around 65 per cent of grounded investments, driven by high-value projects.<span class=\"id-r-component br\" data-pos=\"44\"\/>She added that sectors such as electronics system design and manufacturing, aerospace and defence, and auto\/EV have also seen significant activity.<span class=\"id-r-component br\" data-pos=\"46\"\/>Rai said the agency is currently focusing on 11 countries to attract higher inflows.<span class=\"id-r-component br\" data-pos=\"48\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/govt-likely-to-notify-fema-changes-for-foreign-firms-with-up-to-10-chinese-stake\/articleshow\/130635358.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government is set to soon notify changes under the Foreign Exchange Management Act (FEMA) that will ease foreign direct investment (FDI) norms for overseas companies with up to 10 per cent Chinese shareholding, a senior official told news agency PTI on Thursday.Once notified by the Department of Economic Affairs (DEA), the revised framework will 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