: In a bid to increase capital flows into the country, the Union Cabinet, on Thursday, announced a major shift in foreign direct investment policy by categorising non-repatriable investments by non-resident Indians (NRIs), overseas citizens of India (OCIs) and persons of Indian origin (PIOs) as domestic investment.
“The Cabinet approved amendments to FDI policy on investments by NRIs, PIOs & OCIs. This will give PIOs & OCIs parity with NRIs in economy and education,” an official spokesperson said.
Increased inflow An official release from the government added that 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.
The proposal was floated by the Department of Industrial Policy and Promotion and the government had formed a committee to deliberate on this matter last year. The Narendra Modi-led government, which has liberalised the FDI policy for sectors such as defence, railways, construction development, medical devices and insurance, is keen to tap NRIs, OCIs and PIOs.
During the April-February period of the previous fiscal, FDI rose by 39 per cent to $28.81 billion against $20.76 billion in the same period last fiscal.
Revival of urea plants In another decision the Cabinet also approved the revival of closed urea plant in Sindri, Jharkhand, and setting up of a new fertilizer plant in Namrup in Assam at a total investment of Rs.10,500 crore. The government also extended the timeline for completing the National Automotive Testing and R&D Infra Project (NATRIP) by three years.
The extension of timeline will help the project to be completed as per the objectives, and ensure that state-of-the-art automotive testing, homologation and R&D facilities are made available in India, an official release said.