GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
(FDI POLICY SECTION)
NEW DELHI

PRESS NOTE NO

01 (2021 Series), Dated: March 19, 2021

Subject: Review of the FDI Policy on downstream investments made by Non-Resident Indians (NRIs).

The Government of India was reviewed the extant FDI policy in relation to investments made by a Indian company owned and controlled by Non-Resident Indians (NRIs) on a non-repatriation basis and in order to prove clarity on downstream investments made following addition in the consolidated FDI Policy Circular of 2020 (FDI Policy) effective from 15.10.2020, and as amended from time to time.

2. Insertion of clause (c) under Para 1.2(ii) in Annexure 4

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.

3. The above decision will take effect from the date of FEMA notification.

[DPIIT File No. 5(13)/2020-FDI Policy]

(Manmeet Kaur Nanda)
Joint Secretary to the Govt. of India