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.
No comments:
Post a Comment