Gopichand P Hinduja, Co-Chairman of the Hinduja Group, has suggested that investments by non-resident Indians (NRIs) in the country should be treated on par with resident Indians, and that sector caps applicable to foreign investors should be removed for NRIs.

In a note to the Government and on behalf of overseas and NRIs, Hinduja has recommended that a certain approach in investments would guarantee the success of the ‘Make in India' campaign launched by Prime Minister Narendra Modi.

Citing an example, he has said NRIs are not permitted to hold more than 49 per cent shareholding in the defence sector. He has asked that the restriction on foreign companies be relaxed and removed for NRIs. Stating that Prime Minister Modi recognises the importance of NRIs and their contribution to India, he added the Government needs to look at them in a new light. The statement from the Hinduja Group has also been submitted to External Affairs Minister Sushma Swaraj.

“NRIs have a crucial role in promoting India globally, and work hard in their host countries to adopt more India-friendly policies. An impediment to NRIs investing in India is the prohibition of OCBs (overseas corporate bodies) controlled by NRIs,” he said.

Since many NRIs have their wealth tied up in corporations, Hinduja has suggested that the Government allow OCBs to invest, “as long as proper disclosures are in place and Know Your Customer information is provided”.

India received foreign remittances worth $70 billion in 2013 from NRIs, which is more than the $65-billion earned from the country’s flagship software services exports, Hinduja said, adding it remains the leading country for such remittances.

“The Government should launch an initiative to encourage the use of the NRI funds, rupee denominated for investment in social and physical infrastructure in India,” he added in the statement.

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