Emulating the Singapore-model, India will now offer residency permits of up to 20 years to foreign investors who make investments of at least Rs 10 crore in the country.
The Union Cabinet, headed by Prime Minister Narendra Modi, approved a proposal to allow foreign investors to obtain 10-year residency permits if they invest Rs 10 crore over 18 months or Rs 25 crore over three years. The residency status can be extended for an additional 10 years, if necessary.
An official statement said permanent residency status will be granted for 10 years with multiple entry. This can be reviewed for another 10 years if the holder has not come to adverse notice.
Investors will also be allowed to buy one residential property in the country, and their spouses and children will be allowed to work or study here. However, this scheme will not be available for Pakistani or Chinese citizens.
"A certain threshold if you invest in India, then the availability of visa, the availability of the right to purchase assets, the availability of employment for family members, there is a detailed policy that has been approved by the Cabinet today," Finance Minister Arun Jaitley said after the meeting.
The scheme is expected to encourage foreign investment in India and facilitate the Make in India Programme. Under the scheme, suitable provisions will be incorporated in the Visa Manual to provide for the grant of PRS to foreign investors.