The extant policy allows special dispensation for NRI investments in construction development and civil aviation sector. Further, investment made by Non-Resident Indians under schedule 4 of FEMA (Transfer or issue of Security by Persons Resident outside India) Regulations is deemed to be domestic investment at par with the investment made by residents.

In order to attract larger investments, which are possible through incorporated entities only, the special dispensation of NRIs has been extended to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs. Henceforth, such entities owned and controlled by NRIs will be treated at par with NRIs for investment in India.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Nirmala Sitharaman in the parliament recently.
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