10 March 2016

Remittances by Non Resident Indians (NRIs)

Remittances by Non Resident Indians (NRIs)
According to the World Bank Migration and Remittances Factbook, 2016, India is the top recipient of remittances in the world for the year 2015.

As per information received from the Reserve Bank of India, the amount of Remittances (i.e., private transfers) to India in last two years is as under:

Year
Amount (US $ Billion)
2013-14                          
69.6
2014-15                       
69.8

Department of Industrial Policy & Promotion formulates FDI policy across various sectors, including investments from Non Resident Indians (NRIs). FDI policy covers remittances for investment in various sectors. As per information received from DIPP to facilitate investment by  Non Resident Indians /Persons of Indian Origin (PIOs) extant FDI policy was amended in November 2015 to provide following:

a)    Investment made by NRIs, PIOs and OCIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations on non-repatriation basis is deemed to be domestic investment at par with the investment made by residents.
b)  The special dispensation of NRIs is also available to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs.
c)    NRIs have special dispensation for investment in Construction development and Civil Aviation sector.

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