The union cabinet on Thursday approved review of the foreign direct investment (FDI) policy to make investments by overseas Indians easier.
Overseas Indians comprise NRIs, Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs).
The cabinet has approved redefining an NRI as an individual resident outside India who is citizen of India or is an OCI cardholder within the meaning of Section 7 (A) of the Citizenship Act, 1955, while PIOs who have registered under a central government notification of August 19, 2002, will also be deemed OCIs, a statement said.
Investment by NRIs under Foreign Exchange Management Act (FEMA) will be deemed to be a domestic investment at par with investments made by residents.
