The overseas Indian investors would find it simpler to access nodal bodies and invest in India. However, a note of caution: the Reserve Bank of India too is attempting to regularize certain sections in Foreign Exchange Management Act (FEMA) which also allow NRIs, routes to invest in India.

Its contention is that NRIs tend to invest much more than the cap allowed in the sectors through these other routes, thereby exceeding allowed limits for FDI. The government may also remove the liberties provided to NRIs in sectors such as aviation, real estate etc.

In the discussion stage the government intends to bring out concrete policies in this direction. Proposals can also be sent to DIPP online. This facility will enable all overseas investors to speed up their investment proposals.

Significantly, as per the latest FDI estimates released by Department of Industrial Policy and Promotion (DIPP), the government nodal agency, the non-resident Indians (NRIs) have contributed FDI inflows worth about US$ 41.78 million in December 2009 through the automatic route, almost 2.71 per cent of the total FDI inflows in the same month. Total NRI FDI inflows through the period April-December 2009-10 stood at US$ 320.05 million.

According to DIPP, Mastek Ltd., Wire Wireless (i) Ltd, Orbit Corporation Ltd and Bang Overseas Ltd were some of the Indian companies that received NRI contributions through the automatic route in December 2009. Meanwhile, Jones Lang LaSalle Meghraj, a property advisory firm, remarked in its March global market perspective report, that the previous two months saw high networth individuals (HNIs) as new investors in Indian real estate.

Many wealth managers such as Barclays recommend that banking, infrastructure and real estate would be major avenues for foreign investment in 2010. Continued flow of foreign capital in the form of FDI, FII investments, NRI remittances and export earnings are hence expected to continue strengthening of the rupee in 2010.

The states of Karnataka and Gujarat are now preparing for major events to be held for attracting investments into the State for different investment sectors. These states are extending all cooperation to investors through their Global Investor Meet in June 2010 and Golden Jubilee celebrations starting May, respectively. These events are expected to garner major inflows from investors, both domestic as well as overseas.

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