NEW DELHI: In order to increase foreign inflows in the country, the Cabinet Committee on Economic Affairs (CCEA) on Thursday liberalised foreign direct investment norms for NRIs and overseas citizens of India (OCI) the country.
“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,” a official statement said.
As per the DIPP's proposal any investment made by NRIs. OCIs and PIOs from their rupee account in India, will not be treated as foreign investment.
Foreign direct investment has shown substantial increase across the sectors. During the period October, 2014 to March, 2015, FDI inflow recorded a growth of 38 per cent from $18.13 billion in $24.95 billion. More than 50 per cent of the FDI was received from October, 2014 to March 2015. FDI equity inflows also increased from $11.7 billion to $ 16.24 billion, recording an increase of 39 per cent.
The government wants to channelise the funds of NRIs, who now have set up large businesses abroad, by treating non-repatriable investments by NRIs as domestic investment.