The scheme is expected to encourage foreign investment in India and facilitate Make in India Programme, an official press release said. In a shift toward leniency, the government said that it would give foreign-owned single-brand retailers a three-year grace period from requirements that mandated they buy at least 30% of their manufacturing materials from Indian vendors, among other relaxations. That can be extended for another decade if certain conditions are met.
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“The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions, his/her spouse and dependents”, the statement added.
Foreigners need to invest 100 million rupees ($1.49 million) over 18 months, or 250 million rupees over three years, resulting in jobs for at least 20 resident Indians every fiscal year to be allowed to settle, the government said in a statement.
Earlier this year, Prime Minister Narendra Modi announced an overhaul of foreign ownership rules in another move to attract overseas investment.
Currently, investors may stay in India for five years on a business visa. Due to security concerns, Pakistan and China would be restricted from the new PRS scheme.
In a bid to woo greater foreign investments, India has made a decision to grant Permanent Residency Status (PRS) to foreign investors who meet the minimum investment and employment generation criteria.
Foreign direct investment into India climbed 23 percent to $55 billion in the 12 months through March 2016, buoyed by Modi’s steps to ease curbs on inflows.
The spouse/dependents of the PRS holder will be allowed to take up employment in private sector (in relaxation to salary stipulations for Employment Visa) and undertake studies in India. India’s GDP increased 7.6 per cent in the quarter that ended in June.
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The nation ranks 130 of 189 economies in the World Bank’s Ease of Doing Business index for 2016.
