India gets $511.5 million in FDI under new policy for neighbouring countries

NEW DELHI, Aug. 21 (Reuters) - India has received 29 foreign direct investment proposals worth 48.95 billion rupees ($511.5 million) under a new automatic route that allows investors from land-bordering countries, including China, to hold non-controlling stakes of up to 10%, the government said on Friday.

The investments span information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services, India's commerce and industry ministry said.

The disclosures offer an early indication of investor use of rules introduced in May that eased approval requirements for companies with limited, non-controlling ownership from countries sharing a land border with India.

Under the revised framework, investors with non-controlling ownership of up to 10% from land-bordering countries, mainly China, may invest through the automatic route, subject to applicable sectoral caps and other conditions.

Previously, foreign investors with any beneficial ownership linked to countries sharing a land border with India generally needed prior government approval under rules introduced in 2020, including where such ownership was small.

"The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands," the ministry said in a statement.

($1 = 95.6950 Indian rupees)