Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved to review Foreign Direct Investment policy on investments by Non-Resident Indians, Persons of Indian Origin and Overseas Citizens of India. During the period October, 2014 to March, 2015, FDI inflow recorded a growth of 38% from US $ 18.13 billion in US $ 24.95 billion. FDI equity inflows also increased from US $ 11.7 billion to US $ 16.24 billion, recording an increase of 39 percent.
NRIs can invest under schedules 1, 3 and 4 of FEMA 20/2000 issued by the Reserve Bank of India. Under Schedule 4 of FEMA, NRI investments are made on non-repatriation basis though it has not been provided that these are domestic investments. Facility to invest on non-repatriable basis under Schedule 4 of FEMA 20/2000 was introduced to provide an option for utilization of their domestic resources, which were not freely repatriable. The scheme was intended to provide an incentive to bring funds without repatriation rights at a time when foreign exchange reserves were limited and capital inflows were modest.