New Delhi is considering simpler approval forms for companies with less than 10% Chinese ownership, alongside measures to boost domestic manufacturing and startup finance.
The Indian government is considering streamlining paperwork under Press Note 2 to make foreign investment approval easier for companies with less than 10% Chinese ownership, sources told ANI. The proposed changes would simplify application forms and cut procedural hurdles for firms with only minority Chinese shareholding, as New Delhi looks to preserve scrutiny of sensitive investment flows while reducing friction for bona fide business activity.
The review comes after India tightened and then refined its rules for investment from countries that share a land border with India. In March 2026, the Department for Promotion of Industry and Internal Trade updated the framework through Press Note 2, building on the regime introduced under Press Note 3 of 2020. Under the revised rules, investments involving entities or beneficial owners from border-sharing countries still require government approval where applicable, while the policy also sets out reporting requirements and a definition of beneficial ownership for direct or indirect stakes from those jurisdictions.
The same policy push is being paired with wider industrial and startup measures. According to sources, the Department for Promotion of Industry and Internal Trade has drawn up a priority list of 100 products for import substitution, as officials seek to expand domestic manufacturing and reduce reliance on overseas suppliers. Consultations with other ministries and stakeholders are under way before the next phase is formalised.
In a separate move to support entrepreneurship, the government has finalised 15 alternative investment funds under Fund of Funds 2.0, with Rs 270 crore set aside for the Small Industries Development Bank of India to support investments. Officials are also planning a full redesign of the BHASKAR platform, which is intended to serve as a startup knowledge registry and improve information-sharing across the ecosystem. Sources said the upgraded platform is expected to launch in the first half of 2027.
Taken together, the measures suggest a broader effort by the government to make India more welcoming to investment while keeping tighter oversight over ownership from neighbouring countries and bolstering local industry and startup finance.
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