The Union Cabinet has given its approval to review of Foreign Direct Investment (FDI) Policy on investments by non-resident Indians (NRIs), persons of Indian origin (PIOs) and overseas citizens of India (OCIs), according to an official statement.
The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the FDI policy with the stated policy of the government to provide PIOs and OCIs parity with NRIs in respect of economic, financial and educational fields.
Additionally, the decision that NRIs investment under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) regulations will be deemed to be domestic investment made by residents, is meant to provide clarity in the FDI policy as such investment is not included in the category of foreign investment, the statement said.
The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country.
