Improved India-China Relations Prompt Review of Investment Rules

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India-China Ties Improve: Investment Rules Under Review Amid Diplomatic Thaw

A collaboration would bolster India’s domestic manufacturing ecosystem and reduce dependence on finished imports from China.

M

Moneycontrol•02-03-2026, 16:00

India-China Ties Improve: Investment Rules Under Review Amid Diplomatic Thaw

•India-China bilateral relations have seen a constructive transformation since 2024, following prolonged diplomatic strain.
•Key agreements include patrolling protocols along the Line of Actual Control and activation of dialogue mechanisms at ministerial levels.
•Normalization measures in 2025 included resuming direct flights, tourist visas, Kailash Mansarovar Yatra, and Chinese cooperation on critical supplies.
•The Indian government is reviewing Press Note No. 3 (PN3) from 2020, which requires prior approval for investments from land-border sharing countries.
•Proposed changes include a 'de-minimis' threshold for investments from these countries, allowing automatic route for non-sensitive sectors below the threshold.

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