In order to make India a more attractive foreign investment destination, the Ministry of Finance is planning to introduce the residency permit policy, which will allow key executives of foreign companies making investments worth US$ 2 billion or more in India, to avail various facilities such as special package on upscale housing, residency permits allowing long stay in the country, and cheap rates for utilities.

The Government of India recently relaxed the FDI policy norms for Non-Resident Indians (NRIs). Under this, the non-repatriable investments made by the Persons of Indian Origin (PIOs), Overseas Citizens of India (OCI) and NRIs will be treated as domestic investments and will not be subject to FDI caps.

In last two years, Government has brought major FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension Sector, Broadcasting Sector, Tea, Coffee, Rubber, Cardamom, Palm Oil Tree and Olive Oil Tree Plantations, Single Brand Retail Trading, Manufacturing Sector, Limited Liability Partnerships, Civil Aviation, Credit Information Companies, Satellites- establishment/ operation and Asset Reconstruction Companies.

Under the Modi Government the first big initiative for radical changes in FDI Policy was taken in November, 2015.  The second radically liberalized regime was announced on June 20, 2016. The second phase includes changes in sectors including pharmaceuticals, defence, aviation, e-commerce and single brand retail. These decisions were announced with a view to make India more investor friendly and an attractive FDI destination.

“The decision will take immediate effect,” the Department of Industrial Policy and Promotion (DIPP) said in a press note.