FDI rules to allow NRIs to invest in India

mangaloretoday.com

New Delhi, May 21: Union Cabinet on Thursday approved amendments to the Foreign Direct Investment (FDI) policy on investments by Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizen of India (OCIs) for greater forex remittances.

 

The proposal was floated by the Department of Industrial Policy and Promotion to tap the NRIs for investments in defence, railways among other sectors. Last year, the government had formed a committee on this matter
 
Since coming to power in May last year, the Narendra Modi government has liberalised the FDI limit in crucial sectors like defence, insurance, real estate, railways and medical devices. The measures were aimed at improving India’s ranking in the World Bank’s Ease of Doing Business index, where India stands at 142 among 189 countries.

The measures could also be seen in the context of the Modi government allowing NRIs to vote through e-ballot system or proxy.