Lok Sabha Question No. 1301 (UNSTARRED), answered on 2017-07-24
Subject: Investment by NRIs
Ministry: COMMERCE AND INDUSTRY
Asked by: PRATAPRAO GANPATRAO JADHAV, LAXMI NARAYAN YADAV, LAXMAN GILUWA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1301.

TO BE ANSWERED ON MONDAY, THE  24 TH  JULY, 2017.

## INVESTMENT BY NRIs

## 1301.  SHRI PRATAPRAO JADHAV: SHRI LAXMI NARAYAN YADAV: SHRI LAXMAN GILUWA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) the  total  amount  of  investment  made  by  the  Non-Resident  Indians  in  the country, particularly in Maharashtra during the last three years, sector-wise;
- (b) the  extent  to  which  the  said  investment  has  proved  beneficial for the  social and economic sectors of the country; and
- (c) the steps taken by the Government to attract more such investment in future?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): The  sector-wise  details  of  investment  made  by  the  Non-Resident  Indians (NRI's)  in  India  are  not  maintained.  However,  the  total  amount  of  investment made by NRIs in the country & State of Maharashtra as FDI and details of the NRI investment in stock exchanges in India during the last three financial years is at Annexure -I.
- (b): Foreign/  NRI  investment  is  largely  a  matter  of  private  business  decisions. However,  it  complements  and  supplements  domestic  investment.    Domestic companies are benefited through it by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial  practices  resulting  into  employment  generation  and  accelerated growth of the sector.
- (c): As  per existing policy, non-resident Indians have been permitted to subscribe through banking channel and on non-repatriation basis, to chit funds, without limit, subject to the conditions stipulated by the Reserve Bank of India from time to time. Investments by NRIs made on non-repatriation basis under Schedule 4 of  FEMA Regulations is deemed domestic investment treated at par with the investment made by residents and is not subject to sectoral caps or reporting requirements. A Non-Resident Indian is permitted to subscribe to the National Pension System governed and administered by Pension Fund Regulatory and Development  Authority (PFRDA),  provided such subscriptions  are  made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act. Further, Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains  increasingly  attractive  and  investor-friendly  investment destination.  FDI  policy  on  NRIs  is  applicable  across  the  country  including  for the State of Maharashtra.

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ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  T0  PART  (a)  OF  LOK  SABHA UNSTARRED QUESTION NO. 1301 FOR ANSWER ON 24 TH  JULY, 2017.

Investment By NRIs

(Amount in Rupees crore)

| Financial Year   | Investment by NRIs as FDI   | Investment by NRIs as FDI   | NRI Investments in Stock Exchange in India   | NRI Investments in Stock Exchange in India   | NRI Investments in Stock Exchange in India   |
|------------------|-----------------------------|-----------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|                  | India                       | Maharashtra                 | Purchases                                    | Sales                                        | Net Position                                 |
| 2014-15          | 1,054.11                    | 211.96                      | 12629.20                                     | 25233.90                                     | -12604.70                                    |
| 2015-16          | 1,675.95                    | 190.30                      | 13406.00                                     | 6590.60                                      | 6815.30                                      |
| 2016-17          | 991.36                      | 258.09                      | 14889.30                                     | 10244.90                                     | 4644.30                                      |
| Total            | 3,721.42                    | 660.35                      | 40924.50                                     | 42069.40                                     | -1145.10                                     |

Source: Reserve Bank of India