An explosion and fire at a fireworks shop in eastern China has killed eight people and left two others with minor burns ahead of the Lunar New Year, authorities said. The Sunday (February 15, 2026) afternoon blast in a village in Jiangsu province was caused by a resident setting off fireworks
Economist, political commentator and former media adviser to Manmohan Singh, Sanjaya Baru, has backed TMC supremo Mamata Banerjee as a prime ministerial face. In an article published in The Telegraph, Baru said it was time for the country to have a second woman prime minister
After US President Donald Trump oversaw the seizure of his Venezuelan counterpart Nicolás Maduro last month, he vowed to tap the country's oil reserves – the world's largest. Trump now says that he plans to visit the South American country, although no date has been set
Congress leader Mani Shankar Aiyar on Monday sparked fresh controversy within the party after launching a blistering attack on senior colleagues, questioning the Congress’s leadership and predicting an electoral setback in Kerala. Aiyar’s remarks come amid a storm over his recent praise for
Former Assam Congress chief Bhupen Borah has withdrawn his resignation after the party high command's intervention, AICC state in-charge Jitendra Singh claimed on Monday (February 16, 2026). Senior Congress leaders, including Mr. Singh and Assam unit chief Gaurav Gogoi met Mr
Trisha Krishnan slams Tamil Nadu BJP chief’s inappropriate remarks linking her to actor-turned-politician Vijay. Chennai: Actress Trisha Krishnan has taken strong objection to remarks made by Tamil Nadu BJP Chief Nainar Nagendran when he was speaking about actor-turned-politician Vijay
Raveena Tandon was one of the most successful Bollywood actresses back in the 90s. She gained prominence amongst the masses for commercially successful films like Dilwale, Mohra, Khiladiyon Ka Khiladi, Bade Miyan Chote Miyan, Dulhe Raja, and Anari No 1. Thus
UP Widow Pension Scheme Update: Uttar Pradesh Chief Minister Yogi Adityanath has declared a hike in financial assistance under the state’s Widow Pension Scheme (Nirashrit Mahila Pension Yojana), benefiting nearly 1.06 crore people covered by various social pension programmes
Make in India, funded by China? India can’t shut out Chinese cash
India is reviewing its stringent FDI rules for Chinese capital, potentially introducing a de minimis threshold for automatic approvals of small investments. This move aims to balance strategic caution with industrial needs, easing entry for low-risk capital while maintaining guardrails for critical sectors. Industry leaders advocate for this measured approach to boost manufacturing and access vital supply chains.
Amid a growing thaw with China, India can revise its stance a bit on Chinese capital eager to flow into India. The government is reviewing Press Note 3 and examining the feasibility of introducing a de minimis threshold that would allow automatic approvals for small foreign investments from countries sharing a land border with India, ET reported today.
Press Note 3, introduced in April 2020, made prior government approval mandatory for FDI from such countries, a move widely understood to target investments originating from China.
Also Read: India reviews Press Note 3, may ease small FDI entry with de minimis rule
“We are examining whether there could be any openings to make it faster and easier to get a yes or a no on investments into India,” a top government official told ET. “We are also examining whether we could have any de minimis to permit larger funds that have some small element which has come to our attention,” an official told ET.
At the same time, the government has made it clear that Press Note 3 will not be rescinded. While the government might exempt low-value or low-stake investments from the approval route, strong guardrails will remain in place for investments with a critical or strategic angle.
This potential revision in stance will come, if it does, after months of industry demands, market signals, and a broader rethink on how India can balance strategic caution with industrial requirement.
Industry pushes for a 26% JV cap
One of the clearest signals of business sentiment came a few months ago when ET reported that Indian electronics companies had urged the government to permit joint ventures with Chinese firms, provided their equity participation is capped at 26%. The rationale behind this demand is pragmatic. Electronics manufacturers argue that Chinese firms bring capital, technology, and integration with established supply chains that India currently lacks at scale. A minority cap, they suggest, would ensure operational collaboration without ceding control.
The electronics sector is central to India’s manufacturing ambitions. Yet the upstream ecosystem - from components and tooling to process engineering - remains deeply linked to Chinese suppliers. By advocating a 26% threshold, industry is effectively proposing a structured compromise which will allow access to Chinese capital and know-how, but ring-fence strategic control.
The de minimis discussion reported today by ET on Monday fits into this broader pattern of a measured easing rather than wholesale liberalisation.
Also Read: The Japanese are pouring big money into India
Companies are already moving ahead
Even while Press Note 3 approval is pending, some Indian companies are going ahead with Chinese investment plans, highlighting how business realities are already testing the rigidity of rules barring Chinese money into Indian industry. ET reported recently that some Indian firms have proceeded with operational and commercial arrangements even while formal approvals remain pending.
This reflects the friction that has emerged under the current regime. Under Press Note 3, any FDI proposal from entities based in or beneficially owned by citizens of bordering countries (read China) must go through government approval irrespective of size. ET reported that industry executives have complained of delays even in cases involving minor stake purchases or follow-on investments in ventures that were previously cleared. Such delays can carry economic costs. Capital-intensive sectors cannot easily pause expansion while regulatory processes stretch out. The fact that companies are going ahead with their plans despite pending approvals suggests that commercial urgency is outpacing administrative timelines.
The proposed de minimis rule, if adopted, could address precisely these bottlenecks by fast-tracking low-risk, small investments without dismantling the broader guardrails aimed at China.
The case for lowering guards
India should take a fresh look at the government’s curb on FDI from China, economist Sajjid Chinoy has said recently, arguing that allowing Chinese capital into the country will be more useful than placing tariffs on goods coming from the northern neighbour. Chinoy, the chief India economist at JP Morgan and a part-time member of the Economic Advisory Council to the Prime Minister, said at an event in November last year that private capital expenditure has been weak because companies lack demand visibility at a time when cheaper Chinese goods are entering the country in large quantities.
Chinoy argued that India should reconsider an approach that relies heavily on tariffs and restrictions, and instead attract Chinese FDI in a cautious manner. The underlying logic of his argument is that tariffs may protect in the short run, but investment can build domestic capacity. By drawing Chinese capital into India under controlled conditions, India could internalise parts of the value chain rather than remaining dependent on imports. The emphasis is not on indiscriminate openness, but on leveraging FDI to deepen domestic manufacturing ecosystems.
Chinoy’s argument resonates with the broader industrial policy objective of expanding local production under initiatives such as Make in India. If Chinese firms invest and manufacture locally, jobs and capabilities are created on Indian soil, even if capital originates across the border.
Why India needs a cautious opening
India’s need to loosen restrictions on Chinese investment does not stem from diplomatic warmth alone, though ties have eased over the past year with bilateral visits, resumption of flights and stepped-up dialogue. The more compelling reason is structural.
Manufacturing scale demands integrated supply chains. In electronics, electric vehicles and renewable energy, Chinese firms remain dominant players in intermediate goods and production technologies. Excluding their capital entirely can slow India’s climb up the value chain. Also, small-ticket investments often pose limited strategic risk. A de minimis threshold, whether defined by percentage stake or monetary value, would allow automatic clearance of minor investments while retaining scrutiny for larger or sensitive proposals. As ET reported, the government is weighing “all concerns, including security considerations,” before taking a final call.
Moreover, India competes globally for capital. If procedural uncertainty deters investment flows, firms may redirect funds to more predictable jurisdictions.
Why Chinese companies want to put their cash in India
The interest is not one-sided. Chinese firms face slowing domestic growth and rising trade barriers in developed markets. India offers a large, expanding consumer base and an incentive-driven manufacturing policy environment. Chinese firms are seen as valuable partners in scaling production capacity. Minority joint ventures, capped stakes and structured collaborations provide them access to one of the world’s fastest-growing major markets without necessarily seeking controlling positions.
Moreover, local manufacturing in India can help Chinese companies navigate tariff regimes and geopolitical tensions elsewhere. Investing in India becomes both a growth strategy and a diversification hedge.
The security–growth trade-off
However, no argument can negate legitimate security concerns, and the government is mindful of that. Press Note 3 was crafted precisely to guard against risks involving beneficial ownership, links to the Chinese Communist Party or the People’s Liberation Army, and potential vulnerabilities in critical infrastructure. Adverse security reports can stall proposals and ministries of home and external affairs scrutinise such investments.
However, many think security need not require indiscriminate restriction. A de minimis framework would preserve hard scrutiny for substantial or strategic Chinese investments while easing minor inflows that pose no control risk.
“We have a cautious approach about the nature of investments that come into the country as we want to ensure there are no opportunistic takeovers of our critical sectors. And, therefore, Press Note 3 will continue,” an official has told ET. The likely trajectory, then, could be managed liberalisation rather than policy reversal.Add as a Reliable and Trusted News Source Add Now!
Source: EconomicTimes
Related Posts: India AI Impact Summit 2026 is a testament to youth power Ishan Kishan REACTS As Payal Gaming Praises Him After India Beat Pakistan In T20 World Cup Kerala must make contribution to strengthen secularism in India Blame game in Pakistan camp after hammering by Team India India's first ‘cow culture’ museum to open in U India AI Impact Summit 2026 opens T20 World Cup India vs Pakistan BEL-Safran JV for HAMMER Missiles ahead of 6th India-France Defence Dialogue American chipmaker Micron to begin commercial production in India by month-end "India-Pakistan matches will lose commercial value soon"
India is pushing for global agreement on AI copyright. Minister Ashwini Vaishnaw stated the need for consensus to protect creators' rights. The country aims for techno-legal solutions to balance innovation and intellectual property. India is also investing in a creator economy
1 minutes ago
Overall imports during the month grew at a faster pace of 18.77 per cent, rising to USD 90.83 billion from USD 76.48 billion in January 2025, the ministry data showed. New Delhi: India's overall exports, merchandise and services combined, increased by 13.16 per cent year-on-year to USD 80
1 minutes ago
Android 17 version is already live, at least in the beta version for Pixel devices as Google enters 2026 with focus on making the latest number available at the earliest. The company did make a goof-up with the Pixel 9 launch when it did not have Android 15 (the latest version) available with the
1 minutes ago
At the India AI Impact Summit 2026, Global South leaders from Indonesia, Uganda, and Ghana gathered to advance AI collaboration through shared learning, regulatory alignment, and infrastructure partnerships for economic and social gains. At the India AI Impact Summit 2026
1 minutes ago
In the wake of Pakistan’s bruising 61-run defeat to India at the R. Premadasa Stadium, a fresh controversy has emerged regarding the pre-match conduct of Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi. In the wake of Pakistan’s bruising 61-run defeat to India at the R. Premadasa Stadium
1 minutes ago
The Election Commission has directed West Bengal authorities to expedite the processing of Form 7 objections related to voter list revisions. This directive follows reports of alleged record burning and concerns over the misuse of Form 7 by political parties for electoral gains
1 minutes ago
Apple's iPad 3 Dots On Back: The iPad Pro was the first model in Apple's lineup to feature this connector, along with the Smart Keyboard. Apple's iPad 3 Dots On Back: If you’ve recently picked up Apple’s new iPad, you might have noticed three tiny dots placed neatly on the back or along the
1 minutes ago
Data engineering, often described as the backbone of the digital economy, continues to see strong demand heading into 2025 and 2026. While data scientists focus on building analytical models, data engineers are the ‘architects and plumbers’ who build the infrastructure that makes data usable
1 minutes ago
Pakistan’s Prime Minister Shehbaz Sharif on Monday conveyed warm wishes to China and Chinese communities worldwide on the occasion of the Chinese New Year 2026, marking the beginning of the Year of the Horse. In a message shared publicly, he shared greetings to President Xi Jinping and the people
1 minutes ago
India’s Chief Economic Advisor V Anantha Nageswaran on Monday said the effect of emerging technologies on India’s future will depend on deliberate policy decisions, stressing that artificial intelligence (AI) must be aligned with mass employability rather than left to evolve on its own
1 minutes ago
India U19 star Vaibhav Sooryavanshi will not take his Class 10 board exams this year. His coach confirmed he is preparing for the IPL with Rajasthan Royals. Sooryavanshi's father stated cricket is the immediate priority. He will appear for the exams next year
1 minutes ago
The presence of Bangladesh’s deposed Prime Minister Sheikh Hasina in India will not “deter” Dhaka from pursuing its broader relations with New Delhi, Bangladesh Nationalist Party general secretary Mirza Fakhrul Islam Alamgir told The Hindu on Monday
1 minutes ago
The Congress on Sunday distanced itself from comments by party member Mani Shankar Aiyar that Communist Party of India (Marxist) leader Pinarayi Vijayan would continue as Kerala’s chief minister. Party leader Pawan Khera said that Aiyar had “no connection whatsoever” with the Congress in
1 minutes ago
Dhurandhar: The Revenge and Toxic: A Fairy will mark the biggest clash of 2026, and ever since the Ranveer Singh starrer’s date was announced, all eyes are on March 19. Despite speculations that the Toxic team might consider postponing the release, Yash has been very firm in his decision
1 minutes ago
Artificial intelligence is a double-edged sword, and the governance objective should be to sharpen the edge of opportunity while blunting the edge of risk, the government's top science advisor said on Monday."Digital penetration has increased
1 minutes ago
Sensex Today: Snapping a two-day falling streak, Indian equities closed Monday’s session on a positive note, sharply recovering from early weakness as strong buying in banking, realty, and pharma stocks lifted benchmark indices while broader markets posted modest gains. The BSE Sensex jumped 650
1 minutes ago
India maintained their dominance over their arch-rivals with a comprehensive 61-run victory at the R. Premadasa Stadium, officially securing their spot in the Super Eight stage of the T20 World Cup 2026. India maintained their dominance over their arch-rivals with a comprehensive 61-run victory at
1 minutes ago
BLS E-Services on Monday said it will acquire a 100 per cent stake in Atyati Technologies for Rs 154 crore.In a regulatory filing, the company informed that the acquisition would be an all-cash deal and is expected to be completed by March 31, 2026
1 minutes ago
Iran's Foreign Minister has arrived in Geneva ahead of a second round of negotiations with the United States, Iranian state television said Monday (February 16, 2026), as Washington keeps up pressure on the Islamic republic. According to Tehran, "indirect" Iran-U.S
1 minutes ago
Indian business schools have recorded a strong showing in the Financial Times Global MBA Rankings 2026, with the Indian School of Business (ISB) emerging as the highest-ranked Indian institution at 12th position globally. This marks a sharp rise for ISB
1 minutes ago
VISAKHAPATNAM: Visakhapatnam City Police issued traffic regulations on ahead of the International Fleet Review (IFR), MILAN, ions, and the International City Parade (ICP-2026) scheduled to be held in Vizag city this week. Rehearsals are scheduled for February 16 and 17
1 minutes ago
Singh said Borah, who has been associated with the Indian National Congress for nearly three decades, had earlier submitted his resignation to the party’s national president. Senior Congress leader Bhupen Borah has withdrawn his resignation after discussions with the party’s leadership
1 minutes ago
CBSE Board Exams 2026: The Central Board of Secondary Education (CBSE) will begin the Class 10 and Class 12 board examinations on February 17, 2026. The exams will be held in a single shift from 10:30 am to 1:30 pm. On the first day, Class 10 students will appear for Mathematics (Basic and
1 minutes ago
Pakistan plans to bench senior players Babar Azam and Shaheen Shah Afridi for their upcoming T20 World Cup match against Namibia. This decision follows their performance in the loss to India. The team management is considering changes to the lineup to secure qualification for the super eight phase
1 minutes ago
With India brushing aside Pakistan in their Group A match, we look at the possible scenarios of the two rivals clashing again at the ongoing ICC T20 World Cup 2026. The Indian men’s cricket team continued their impressive run at the 2026 T20 World Cup
1 minutes ago
Logan Paul has sold an ultra-rare Pokémon trading card for a record-shattering $16.5m (£12m), according to the auction company. The YouTuber and wrestler bought the Pikachu Illustrator card - the best preserved example of one of the rarest Pokémon cards ever - in a deal worth $5.3m (£3
1 minutes ago
India is reviewing its stringent FDI rules for Chinese capital, potentially introducing a de minimis threshold for automatic approvals of small investments. This move aims to balance strategic caution with industrial needs, easing entry for low-risk capital while maintaining guardrails for critical
1 minutes ago
