Relaxation of Press Note 3 May Reopen Door for Chinese Investment, Gradual Recovery Expected

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India Eases Press Note 3: Chinese Investment Path Clears, But Recovery May Be Gradual

FDI from China would grow but slowly

M

Moneycontrol•11-03-2026, 14:45

India Eases Press Note 3: Chinese Investment Path Clears, But Recovery May Be Gradual

•Union Cabinet approved changes to Press Note 3, potentially reopening India for Chinese investment.
•Recovery in Chinese inflows is expected to be gradual, as investment was slowing even before 2020 restrictions.
•Chinese equity inflows declined significantly post-2016 and further after Press Note 3, with 2024 seeing negative investment.
•China's share in India's total FDI has steadily decreased, now around 0.35% by FY26.
•Southeast Asian nations like Vietnam, Thailand, and Indonesia are attracting significantly more Chinese capital.

Read Full Article on Moneycontrol in English

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