New Delhi: The decision to ease foreign direct investment norms for overseas companies with up to 10 per cent stake in Chinese companies will be notified soon under the FEMA law, a senior government official said on Thursday.

In March, the Union Cabinet approved amendments in the press note (PN) 3 of 2020 under which foreign companies having a Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors.

However, the relaxed FDI rules will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India.

The government has also decided that FDI proposals in specified sectors/activities of manufacturing in capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer or any other sector/activity added by the committee of secretaries headed by the Cabinet Secretary will be processed within 60 days. Though the Department for Promotion of Industry and Internal Trade (DPIIT) has notified these changes, the Department of Economic Affairs (DEA) has not yet notified them.

"The DEA will have to issue the notification under FEMA (Foreign Exchange Management Act). It will be notified very soon. It requires a lot of fine-tuning," DPIIT Joint Secretary Jai Prakash Shivahare told reporters here.

He added that the department is working to identify sub-sectors whose applications will be processed within 60 days. Shivahare also informed that total FDI, which includes reinvested earnings, has touched USD 88.29 billion during April-February 2025-26. It was USD 80.61 billion in 2024-25. The net FDI into the country has increased to USD 6.26 billion during April-February 2025-26 against USD 959 million in the full fiscal year of 2024-25.