| While there are many options available for | | | | from abroad or foreign exchange brought in India on a |
| non-residents to invest in India, ‘Real Estate’ is | | | | repatriation basis (better known as Fixed Deposits). In |
| perhaps the fastest growing best option for | | | | general they can open any kind of NRI Account, and |
| non-residents. The reasons for this being the fact that | | | | they can also open FCNR accounts with US Dollar, |
| this sector is self-organising from being an unorganised | | | | Great Britain Pound, Euro or Japan Yen. Such FCNR |
| sector, and India is also one of the emerging | | | | accounts will be operational for a period of one to |
| economies of the world. Also returns from real estate | | | | three years. They can also open NRE fixed deposit |
| investments have done better compared to other | | | | account with Indian Rupee. The duration for NRE |
| investment options available. | | | | account is the same as FCNR accounts. |
| | | | | |
| Non-residents can acquire, rent out, transfer and even | | | | Note: These accounts can be opened by fresh |
| sell immovable property. To add to this they can also | | | | remittances or transferring remittances from existent |
| take the money they get by renting or selling their | | | | accounts, and while remittances can be received in |
| property: this provision being subject to foreign | | | | any currency, it can only be received in the designated |
| exchange regulations. It is important to keep in mind | | | | currency in FCNR Accounts. These accounts can be |
| that non-residents cannot acquire property like | | | | a joint account with two or more non-residents holding |
| agricultural land, farmhouses and plantation. | | | | an account. Such accounts are tax exempted. |
| | | | | |
| Non-residents may purchase such immovable property | | | | Bank Accounts can be opened on a repatriation (NRE |
| either with the help of ‘home loan’ available in | | | | Account) and non-repatriation (NRO Account) basis. |
| banks, or with their ‘own money’; the term | | | | Nomination facility is allowed in favour of residents and |
| ‘own money’ here referring to money received | | | | non-residents. Non-residents can also maintain foreign |
| in India by way of inward remittance from overseas, | | | | currency account in India on permanent settlement in |
| out of income earned overseas, personal savings | | | | India. |
| outside India. These funds can be remitted through | | | | |
| Non-Resident External (NRE) or Non-Resident | | | | Non-residents can invest in secondary market through |
| Ordinary (NRO) or Foreign Currency (non-resident) | | | | Portfolio Investment in equity shares and/or convertible |
| (FCNR) bank accounts. | | | | debentures. |
| | | | | |
| In addition, non-residents can remit sale proceeds | | | | In addition to these, non-residents can invest in Indian |
| outside India for two such properties. Any remittance | | | | Mutual Funds. They can invest through company |
| thereafter requires approval of the Reserve Bank of | | | | deposits on non-repatriation basis for upto a maximum |
| India (RBI). | | | | of three years. Investment is also allowed in PSU |
| | | | | Bonds and/or proprietary or partnership concern in |
| Apart from real estate, non-residents can also invest in | | | | India. Non-residents may also invest in air taxi operation |
| India through Bank Deposits. Non-residents can invest | | | | and Commercial Paper issued by Indian Companies. |
| in Banks’ deposits accounts out of funds remitted | | | | |