GOI relaxed FDI policy in India in respect of NRIs
On June 03, 2015 the Ministry of Commerce and Industry notified that Non-repatriable investments by NRI’s, OCI’s and PIO’s would be treated as investments by resident Indians (or domestic investments).
The ministry has widened the scope of Non-Residential Indian to include Overseas Indian Citizens and Persons of Indian Origin.
The Government has decided to amend the definition of NRIs thereby investment by NRIs under Schedule 4 of FEMA will be deemed to be domestic investments.
In May, 2015 the Cabinet, chaired by Prime Minister Narendra Modi, had cleared these amendments.
The decision is expected to result in increased investments across sectors and greater inflow of foreign exchange remittances leading to higher economic growth.
The government has also notified increase in FIPB’s power to recommend foreign investment proposals of up to Rs 3,000 crore from the earlier Rs 2,000 crore.
Beyond this limit, proposals will go to the Cabinet Committee on Economic Affairs for approval.
The Department of Industrial Policy and Promotion (DIPP), which deals in FDI related matters, issues provisions in the form of press notes or consolidated circular.
In April-February of 2014-15, FDI rose 39 per cent to USD 28.81 billion as against USD 20.76 billion in the same period previous fiscal.