In a bid to increase capital flows into the country, the Union Cabinet, recently, announced a major shift in foreign direct investment (FDI) policy by categorizing non-repatriable investments by non-resident Indians (NRIs), overseas citizens of India (OCIs) and persons of Indian origin (PIOs) as domestic investment.
- This will give PIOs & OCIs parity with NRIs in economy and education.
- The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country.
This proposal was floated by the Department of Industrial Policy and Promotion and the government had formed a committee to deliberate on this matter last year.
Sources: The Hindu.