Thursday, November 30, 2006: As a step to attract investments from overseas investors, Indian Government has come up with a liberal and transparent policy for Non Resident Indians (NRIs) interested to make considerable investments in their motherland. Majority of the sectors are open to Foreign Direct Investment (FDI) under the automatic route.

According to the fresh guidelines, NRIs can invest up to 100% under via automatic route in real estate sector including development of commercial as well as residential property. They can also entertain their interest in the development of townships, city and regional level urban infrastructure amenities including roads and bridges.

NRIs can also pump in money in Indian companies engaged in Air Taxi operation.  For foreign companies, FDI is allowed only up to 49%. Furthermore, they can also invest in different activities under Foreign Exchange Management Act (FEMA) Regulations in the activities such as mutual funds, PSU Bonds.

The list of privileges for the NRIs does not just end here. India has much to offer them. NRIs are also permitted to invest up to 100% equity in partnership concerns whereas the foreign companies are not allowed to entertain their interests through such route.

Next to come are Portfolio Schemes under which NRIs are permitted to invest in high priority in shares and debentures through secondary market purchase from the stock exchanges. However, there is an investment limit for the share at 5% whereas it is 10% for the debentures which is much high than the foreign investors portfolio investment limits.

NRIs can pick immovable property except agricultural land, plantation property, and farm house.