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Union Government relaxes FDI norms for NRIs, PIOs, OCI

Union Government has decided to amend Foreign Direct Investment (FDI) norms for NRIs, Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) to increase capital flows into the country. Decision in this regard was taken at Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi in New Delhi. In order to comply with this decision government will amend FDI policy on investments by NRIs, PIOs & OCIs which will give them parity in economy and education. Now non-repatriable investments of NRIs, PIOs & OCIs under under Schedule 4 of FEMA regulations will considered as domestic investment. The amendments will lead to greater foreign exchange remittances and investment in the country. Previous decisions taken NDA government on FDI are FDI in Railway infrastructure sector has been opened to 100 per cent FDI under automatic route. FDI limit in the insurance sector has been increased to 49 per cent. Sectoral cap for FDI in defence sector has been raised to 49 per cent.

Source: http://currentaffairs.gktoday.in

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