The Department for Promotion of Industry and Internal Trade (DPIIT) has said the downstream investments made by Non-Resident Indians (NRIs) on a non-repatriation basis shall be treated at par with domestic investments and not considered for calculation of indirect foreign investment.
Statement
“Investments by NRI(s) on a non-repatriation basis as stipulated under Schedule IV of Foreign Exchange Management (non-debt instruments) Rules 2019 are deemed to be domestic investments at par with the investments made by residents. Accordingly an investment made by an Indian entity which is owned and controlled by NRI(s) on a non-repatriation basis shall not be considered for calculation of indirect foreign investment,” as per Press Note 1 (2021 series) issued by the DPIIT on Friday.
The change in the FDI policy in relation to investments made by an Indian company owned and controlled by NRIs on a non repatriation basis and in order to provide clarity on downstream investments, made through appropriate additions in the consolidated FDI Policy Circular of 2020 (FDI Policy), is effective from October 15, 2020, the release said.