Foreigners investing Rs 10 crore (about $1.95 million) over 18 months, or Rs 250 crore (about $3.88 million) over three years, would be eligible to live in India for 10 years, the government said. This so-called permanent residency status could be extended by another decade providing certain conditions are met.
Aimed at encouraging foreign investment and achieving Make-in-India goals, the decision was taken earlier this week at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.
However, this scheme would not be available for Pakistani citizens.
Finance Minister Arun Jaitley said: (If you pass) a certain threshold if you invest in India, then there will be availability of visa, the availability of the right to purchase assets, the availability of employment for family members.
The scheme would be applicable only to foreign investors fulfilling the eligibility conditions. The investment should also result in generating employment to at least 20 resident Indians every financial year.
The PR granted will serve as a multiple entry visa without any stay stipulation and PR holders will be exempted from registration requirements. They will be allowed to purchase one residential property to use as a residence. The spouse or dependents of the PR holder will be allowed to take up employment in the private sector and undertake studies in India.
With this move, India is aspiring to compete with the likes of Singapore and Hong Kong for foreign entrepreneurs by offering residence in return for investment.
Prime Minister Narendra Modi is trying to capitalize on Indias position as the fastest-growing big economy to woo investment, particularly in manufacturing.
Its an indication of more broad-mindedness towards foreign investors - itll be easier for them to come to India, said Mohan Guruswamy, a former Indian finance ministry official and chairman at the Centre for Policy Alternatives in New Delhi.
Jaitley unveiled the proposal for long-term residency in February, without providing more details. Currently investors get business visas lasting up to five years.
Foreign direct investment into India climbed 23 per cent to US$55 billion in the 12 months through March 2016, buoyed by Modis steps to ease curbs on inflows.
Commerce Minister Nirmala Sitharaman said Tuesday that Asias No. 3 economy will open more sectors to investment from abroad. Even so, entrepreneurs still have to adhere to detailed rules governing participation in everything from defence to e-commerce.
Indias gross domestic product rose 7.1 percent in the three months through June from a year earlier, according to a report on Wednesday.
The nation ranks 130 of 189 economies in the World Banks Ease of Doing Business index for 2016. Thats up four places from a year ago but still much lower than other Asian centers.
