Introduction
To give a boost to the ‘Make in India’ concept and the resulting foreign investment in India, the Union Cabinet has approved the scheme for grant of Permanent Residency Status (PRS) to foreign investors subject to the relevant conditions as specified in the FDI Policy notified by the Government from time to time.
Framework
Investors will be offered 10-year residency status with relaxed visa rules upon their initial investment. This can be extended by a decade. Under this scheme, the foreign investor will have to invest a minimum of INR 100 million (USD 1.5 million approx.) to be brought within 18 months or INR 250 million (USD 3.7 million approx.) to be brought within 36 months
The offer is conditional on the entrepreneur creating jobs for at least 20 resident Indians every financial year. PRS holders will be allowed to purchase one residential property for dwelling purpose. The spouse or the dependents of the PRS holder will also be allowed to study and work (in relaxation to salary stipulations for Employment Visa) in India.
Conclusion
Prime Minister Narendra Modi is hoping these changes will boost investment in the manufacturing sector. In June, India eased some foreign direct investment restrictions looking to open up jobs in the retail, defence and civil aviation sectors.
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