Indian Government announces new scheme to boost foreign investment
By Maitreya Thakur
A new policy offering residency status in return for foreign investment has been approved by the Indian Government
Taking cue from the ‘Singapore model’, the Government of India devised a new policy whereby foreign investors would be granted residency status if they invest over Rs 10 crore (£1 million) in India. Under this new scheme, investors would be granted permanent residency status for 10 years and this could be extended to up to 20 years at a later date. Additionally, investors would be allowed to buy a residential property and their family would be eligible to study or work in the private sector in India during their stay.
An important clause in the scheme states that the foreign investment must generate at least 20 jobs for resident Indians every year. The scheme is designed to encourage foreign investment in India and support Modi’s ‘Make in India’ programme. Interestingly, this scheme will not be available to Chinese and Pakistani citizens. It is not clear as of now why both these countries have been excluded, and an official statement on the issue is awaited.
This scheme can be availed if a minimum of 10 crores is brought within 18 months or 25 crore (£2.5 million) within 36 months. Initial reaction has been positive and it has been hailed as an “indication of more broad mindedness towards foreign investors” by Mohan Guruswamy, chairman at the Centre for Policy Alternatives in New Delhi. The proposed incentives are expected offer stability during an investor’s stay in India, allowing them to live in India while they ‘Make in India.’
