Last Updated:March 11, 2026, 15:56 IST It reflects a more calibrated approach that attempts to balance security concerns with the need for investment, technology and supply chain integration. Allowing carefully screened Chinese investments in manufacturing could help India expand production capabilities more quickly. The Union Cabinet on Tuesday eased Foreign Direct Investment (FDI) rules for China and other countries sharing a land border with India, by amending Press Note 3 of 2020, according to an official release. India’s move to gradually ease restrictions on Chinese foreign direct investment (FDI) comes at a time of heightened global uncertainty and shifting geopolitical alignments. Nearly six years after New Delhi imposed strict scrutiny on investments from countries sharing a land border with India, the government is now signalling a more flexible approach — one shaped as much by economic realities as by global strategic changes. The original restrictions were introduced in 2020 following the deadly border clashes between Indian and Chinese troops in eastern Ladakh. At the time, India mandated that investments from neighbouring countries, particularly China, would …