India – General

INDIA is the second most populous country in the world after China. India is a multi¬cultural, multi-lingual and multi-racial country. It ranks seventh in terms of area in the world. It is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west and the Indian Ocean in the south. People of different caste, creed, colour, customs, and cultures live here in peace and harmony. India has one of the biggest democracies in the world and believes in maintaining friendly relations with the countries of the world. India has 18% of world’s total population & only 2% of land against it.

Economy

India is now emerging as an economic power. It has the world's twelfth largest economy at market exchange rates and the fourth largest in purchasing power. The location of the country is also very favorable for trade & commerce. There have been several fundamental and irreversible changes in the economy, government policies, outlook of business and industry, and in the mindset of Indians in general. India is today one of the fastest growing economies and is becoming one of the most lucrative investment destinations.

NRI Investment

For NRIs, who are constantly on the lookout for investment options, comfort levels have been high as far as India is concerned. Financial Institutions of India are also offering diversified investment opportunities to suit NRI’s risk appetite. The Government of India is also taking various steps to encourage NRI investments in India.

UNDER FEMA REGULATIONS FOLLOWING PROVISIONS HAVE BEEN MADE FOR NRI

DEFINITION OF NRI/PIO/FN

• Non-Resident Indian (NRI)- that is a citizen of India resident outside India
• Person of Indian origin(PIO)- that is an individual(not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
1. At any time, held Indian passport, or
2. Who or either of whose father or grandfather was a citizen by virtue of the constitution of India or the Citizenship Act, 1995(57 or 1995).

CAN A NRI/PIO/FN PURCHASE IMMOVABLE PROPERTY IN INDIA?

Yes NRI/PIO/FN can purchase immovable property in India but for a Foreign National of Non Indian Origin provisions are different. He can take property on lease for not more than 5 years.

CAN A FOREIGN NATIONAL WHO IS PERSON RESIDENT IN INDIA PURCHASE IMMOVABLE PROPERTY IN INDIA?

Yes but the person concerned would have to obtain the approvals, and fulfill the requirement if any, prescribed by the other authorities, such as the concerned state government, etc. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank of India. Such request is considered by Reserve Bank in consultation with the Government of India.

TRANSFER OF IMMOVABLE PROPERTY IN INDIA?

Transfer by sale:

• NRI can sell the property in India to
1. A person resident in India
2. An NRI or
3. A PIO
• PIO can sell property in India to
1. A person resident in India
2. An NRI
3. A PIO- with the prior approval of Reserve Bank
• Foreign National of Non Indian Origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank to
1. A person resident in India
2. An NRI
3. A PIO