Finance

India Investment Easing Gives Limited Opening to China Firms

Buildings in Lower Parel area in Mumbai.

Photographer: Abeer Khan/Bloomberg

India’s decision to ease investment rules for neighboring countries may reopen the door to Chinese capital, but strict ownership limits mean large firms such as BYD Co. and Great Wall Motor Co. will still face same screening requirements.

New Delhi on Tuesday relaxed rules for investments from countries sharing a land border with India, allowing automatic approval for non-controlling ownership of up to 10%, subject to compliance requirements. The changes underscore the government’s push to attract capital, while highlighting continued caution toward China.