Overview

• A government official said New Delhi is open to relooking at Press Note 3, indicating possible easing of restrictions on Chinese capital.
• Niti Aayog’s proposal to allow up to 24% Chinese equity without prior approval is under discussion, with media reports pointing to the automatic route for non‑strategic areas.
• No policy change has been announced, and Press Note 3 still requires prior government approval for all FDI from countries sharing a land border with India.
• Recent engagement includes ministerial visits, plans to resume direct flights and tourism, talks on border issues, and Chinese facilitation of rare earth magnets and fertiliser supplies.
• The reassessment comes as the US imposes 50% tariffs on India and ahead of a scheduled Modi–Xi meeting at the SCO summit, while manufacturers and private equity funds press for faster clearances.