The Government of India offers a number of facilities and incentives to Non Resident Indians/Persons of Indian Origin and Overseas Corporate Bodies investing in India.
Non Resident Indians (NRIs) fall under the following broad categories:
A person is deemed to be of Indian origin if he at any time held an Indian passport or he or either of his parents or any of his grandparents was an Indian and a permanent resident in undivided India at any time. A wife of a citizen of India or of a person of Indian origin is also deemed to be of Indian origin even though she may be of non-Indian parentage.
Overseas Corporate Bodies (OCBs) include overseas companies, partnership firms, trusts, societies and other corporate bodies which are owned directly or indirectly, to the extent of at least 60%, by individuals of Indian nationality or origin resident outside India, as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons.
For NRIs and OCBs, the automatic approval route is available for investment upto 100% in all 35 industries listed in Annexure III of the New Industrial Policy as distinguished from other FDI where automatic approval is available only for investment upto 51%.
In industries other than those listed in Annexure III, NRIs and OCBs may invest upto 100% equity in industries requiring licensing and areas reserved for the small scale sector, except those reserved for the public sector.
Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.