The government may soon take a decision on liberalising foreign direct investment norms for NRIs and overseas citizens of India as it aims to increase capital flows into the country, said the media report.
A decision in this regard is expected to be taken at the highest level soon, sources said.
In order to encourage more overseas investments into India, the government had last year set up a committee to look into the possibility of treating non-repatriable NRI funds as domestic investment.
The Committee has also looked at issues pertaining to streamlining the process for NRI investments into India and strengthening the reporting system of such investments by the non-resident Indians.
The government wants to channelise the funds of NRIs, who now have set up large businesses abroad by treating non-repatriable investments by NRIs as domestic investment, added the media report.
As per the current FDI policy, NRI investors enjoy special treatment in certain sectors such as civil aviation.
In scheduled air transport service, 49 per cent FDI is allowed but for NRIs, 100 per cent investment is permitted. Similarly in non-scheduled air transport service, 74 per cent FDI is allowed but for NRI's 100 per cent is permitted.