The current Indian government is directing it efforts to making India more attractive to foreign investors and is eager to make India an attractive destination for manufacturing industries. On February 29, 2016, India received its Union Budget for the fiscal year 2016- 2017. Among other things, to give a thrust to the government's 'Make in India' initiative the budget includes provisions to grant residency status to foreign investors. Currently, these investors are granted business visa only up to five years at a time that allow them to stay in India for six months at a time with a very limited options to extend this stay.
At present, it is difficult for foreign investors to obtain long term or permanent residence in India. Currently, these investors are granted business visa only up to five years at a time. Also, executives and key employees of such foreign companies are not generally allowed to stay and work for long periods of time in the country.
According to the Economic Times of India (ET) a leading business newspaper, the government proposes to grant residency permits to members of a foreign company that invests US$ 2 billion in India. These permits, which will allow extended stay in India is likely to be granted to the company's key executives who will also be able to avail of utilities and upscale housing at discounted rates as well as discounted rates for utilities and a special package on upscale housing. See: Make in India push: Invest $2 billion, get residency permits and special rates for utilities
We expect that the Indian government will announce details about this scheme by way of a notification or guidelines before the end of March 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
