Indian Government Reluctant to Extend Parity with NRIs to OCIs

The Government has expressed its reservations to put Overseas Citizens of India (OCIs) at par with Non-Resident Indians (NRIs), based on the objections raised by several ministries.

Concerned ministries have sounded the government on security issues that could crop up if certain rights were given to people of Indian origin holding foreign passports.

The proposal by the Minister of Overseas Internal Affairs (MOIA) seeks
to bring the current number of 1.12 lakh OCIs on the same platform as
regards investment, employment and other economic privileges, except the
right to franchise.

The home ministry has expressed its disapproval to allow OCIs
the exposure to investment in the financial sector, particularly
in the realm of Defence, civil aviation, nuclear energy and other sensitive
areas, and has advocated a thorough scrutiny of such investments by regulatory
authorities.

The Home Ministry seeks to draw a clear line between
NRIs and OCIs who are, officially, foreign nationals.
The Ministry of Health and Family Welfare has also given a conditional
approval for OCIs in the medical profession who are eager to
start a practice in India.

These professionals would have to
undergo a screening test, and register with the medical council
concerned in order to be able to practice in the country. The Ministry
has also demanded an annual visit to the Foreigners’ Regional Registration Office to renew the permission to work in India.

The Department of Economic Affairs has rejected the OCI-NRI parity on
the grounds that acquisition and transfer of property in India is determined
by FEMA , which does not recognise residents of Sri Lanka, Afghanistan,
China, Iran, Nepal and Bhutan as people of Indian origin (PIO).

The PIOs
of these countries are already covered by the OCI scheme.
The Revenue Department is also reluctant to extend tax benefits
and sops available to NRIs under the Wealth Tax and Income tax
laws to OCIs.

Presently, OCIs enjoy multiple-entry lifelong visas for India
and freedom from registration at the Foreigner’s Regional Registration Office during their stay in India.

Photo: Indian Passport 01 by Gpkp, licensed under CC BY-SA 4.0, via Wikimedia Commons.