Every year many people migrate from India to abroad either for education or for doing offshore jobs. While many go just with an intention to make a living with offshore jobs and earn in foreign currency. Over the passage of time, a number of them tend to settle down in foreign countries followed by their families as well.
Such set of people who are of Indian origin or the ones who become Non-Resident Indians or NRIs over a period of time form the direct source of cash inflow in India. Over the past few decades, NRIs have shown great interest in parking their funds in Indian Investments. The government has also simplified the rules and regulations pertaining to investment pattern to encourage more NRI Investments with a sole intention to boost the economic growth of India.
The Union Budget for 2019 presented by the Finance Minister Nirmala Sitharaman has announced benefits for NRIs to woo them. As the NRI investment in the Indian capital market is less. The Finance Minister has proposed to merge the NRI portfolio investment scheme route with FPI (Foreign Portfolio Investment) route.
Foreign Portfolio Investment refers to the grouping of assets including bonds, equities and cash equivalents. These portfolio investments are held directly by an investor or managed by financial professionals.
In addition to this, the Union Budget 2019 also made a big move to issue Aadhar Cards for Non-Resident Indians with Indian Passports. This will be issued to NRIs on arrival. NRIs need not have to wait for 180 days which was a mandatory wait earlier. The issue of Aadhar card to NRIs on arrival to India will help NRIs to a great extent as aadhar card acts as both identity card as well as proof of address as it consists of both demographic and biometric data.