UAE expats: Non-repatriable investment by NRIs not considered FDI – What does it mean?

UAE expats: Non-repatriable investment by NRIs not considered FDI – What does it mean?

Dubai: India continues to be an attractive destination for investors, including non-resident Indians (NRIs). Earlier this week the government issued a clarification on how NRI investments would be treated within the country, going forward, and this news spiked interest among UAE-based Indian expats. However, there was a need to know how this norm can affect your investments, while also understand what has changed from the rule or practices that were previously in place. Moreover, is there anything you - as an NRI - should keep in mind when it comes to the latest investment-related change? "Presently there were different interpretations on whether non-repatriable investments by NRIs should be considered domestically controlled or foreign controlled," said Dixit Jain, managing director at The Tax Experts, DMCC. "The fresh clarification settles the position that it will be considered domestically controlled," Jain added. "This is a helpful clarification by the government." What we know so far is that India's Department for Promotion of Industry and Internal Trade (DPIIT) issued a statement on Saturday that investment by NRIs on non-repatriation basis in an Indian company will be treated as domestic investment for the purpose of calculating indirect overseas capital inflows. This change was brought into