Prime Minister Narendra Modi's government announced the brand new Investor Visa, a move aimed at creating a warmer environment for foreigners trying to push job-generating investments in the country. With the provision, people from other countries who invest $1.5 million in India over a span of 18 months, or $3.7 million over three years, will be given the "permanent residency status" that will last for 10 years, and can be renewed for another decade. The investments should, however, "result in generating employment for at least 20 resident Indians every financial year" the cabinet said.
The investors will be permitted to stay in India as "permanent residents" without having to register with the police, or periodically go abroad. Even their spouses or other dependants will be allowed to work in the country legally. Mark Runacres, a former British diplomat who runs a firm in New Delhi, said, "It's very important psychologically and I think that the announcement would attract a lot of interest and be very welcome. Conceptually what it is signalling is that India doesn't just want people's money, which was the signal before. It understands that people want to come and build their own companies and be part of the scene rather than have that niggly feeling that there always was before of 'leave your money at the door, and don't tell us what to do here'."
Several details of the scheme are yet to be clarified, and questions like whether the 10 year visas can be renewed more than once, and how soon prospective investors can apply, are yet to be answered. It also remains to be seen what type of investors may find the scheme appealing. The investment threshold is low enough that it would not require establishing a large manufacturing plant, but appears sufficiently high to exclude the many young foreign professionals, including designers, that come to India to set up small businesses.
Runacres said he believed the designated investment levels appeared aimed at investors that might create new service industry businesses, perhaps in areas such as health and education. But it could also pave the way for India to accept more foreign participation in the economy, even among industries that do not require them to stump up large sums of cash. “Will we have thousands of applicants appear on the first day? I doubt it,” he said. “But if it works well, it will be a precedent. It’s a first step.”
