NRI investment in Indian housing and real estate | INRnews
New Delhi, November 30, 2006 : The Government of India has put in place a liberal and transparent policy for investment from overseas Indians. Most of the sectors are open to Foreign Direct Investment (FDI) under the automatic route.
Non-Resident Indians (NRIs) can invest upto 100% under the automatic route in the Housing and Real Estate Development for the following activities.
- Developments of services plots and constructions of built up residential premises;
- Investment in real estate governing construction of residential and commercial premises including business centers and offices;
- Development of townships;
- City and regional level urban infrastructure facilities, including roads and bridges;
- Investment in participatory ventures in the above activities;
- Investment in housing finance institutions.
NRIs can invest upto 100% in Indian companies engaged in Air Taxi operation. (For foreign companies Foreign Direct Investment (FDI) is permitted only up to 49%)
Other facilities for NRI
In addition to the investment under the FDI policy, NRI can also invest under other schemes under various Foreign Exchange Management Act (FEMA) Regulations in the following activities/Sectors:
- Mutual Funds
- Investment in PSU Bonds
- Investments up to 100% equity in proprietary/ partnership concerns, except in agricultural/plantation activity or real estate business. (Foreign companies are not allowed to invest in partnership firms/ proprietary concerns)
- Portfolio Schemes: NRIs are permitted to invest in shares and debentures through secondary market purchase from the stock exchanges under the portfolio scheme. Investment limit are 5 % and 10% respectively. These limits are over and above the Foreign Institutional Investors (FII) portfolio investments limits so as to ensure that NRI investment are not crowded out by FIIs.
- NRIs can acquire immovable property, other than agricultural land/ plantation property / farm house and transfer such property to a resident, another NRI.
This information was given by the Minister of Overseas Indian Affairs, Shri Vayalar Ravi in written reply in the Rajya Sabha today.
By INRnews Correspondent
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