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According to data obtained through the Right to Information Act, India had approved 80 Foreign Direct Investment (FDI) proposals involving Chinese entities as of June 29. (RTI).

Since India imposed restrictions on investments from countries with which it shares a land border, the government has received 382 proposals from the Chinese for consideration, according to the Department for Promotion of Industry and Internal Trade (DPIIT) in response to the RTI. It is unclear how many proposals were turned down.

Following the border skirmish, New Delhi made prior government approval, including a security clearance, mandatory for any FDI coming from countries with land borders with India in 2020.

The government did not grant such FDI approvals until mid-2021. However, it has since begun to consider applications on a case-by-case basis.

According to market participants, the government is taking a cautious approach in evaluating such proposals, which is why approvals are taking longer. Furthermore, the deals that receive government approval are typically those involving the acquisition of minority stakes that do not result in a change of control. Capital-intensive industries, such as manufacturing, are being prioritised over sought-after FDI sectors, such as e-commerce and financial services.