India is a home of innumerable business opportunities for the investors worldwide. The Government of India attaches great importance to the investments by overseas Indians like NRIs and PIOs. It has provided a liberalized policy framework for approval of NRI investments through both the Automatic and the Government route. Foreign Direct Investment (FDI) in sector/ activities to the extent permitted under automatic route does not require any prior approval either by Government of India or Reserve Bank of India (RBI). The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents along with form FC-GPR with that office within 30 days of issue of shares to non-resident investors.

FDI in activities not covered under the automatic route requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign (non-resident) investors. The companies are required to notify the concerned regional office of the RBI of receipt of inward remittances within 30 days of such receipt and submit Form FC-GPR within 30 days of issue of shares to the foreign investors or NRIs.

Although it is freely permitted to invest in almost all the sectors of Indian economy like housing and real estate, petroleum refining, telecom, power, drugs and pharmaceuticals, roads and highways, etc., but there are some sectors/ activities under which FDI is prohibited.

Foreign investment in any form is prohibited in a company or a partnership firm or a proprietary concern or any entity, whether incorporated or not (such as trusts) which is engaged or proposes to engage in the following activities/ sectors:-

• Business of Chit fund
• Nidhi Company
• Agriculture (excluding floriculture, horticulture, development of seeds, animal husbandry, pisciculture and cultivation of vegetables, mushroom, etc. under controlled conditions and services related to agro and allied sectors) and Plantation (other than tea plantations) activities.
• Housing, Construction of Farm houses or Real Estate business (except development of townships, construction of residential/ commercial premises, roads or bridges to the extent specified in FEMA Notification)
• Trading in Transferable Development Rights (TDRs)

Further, partnership firms/ proprietorship concerns having investment as per FEMA regulations are not allowed to engage in print media sector. FDI is prohibited under Government as well as Automatic Route for the following sectors:-

• Retail trading (except Single Brand Product retailing)
  
• Atomic energy
  
• Lottery business
  
• Gambling and Betting

Other foreign investment opportunities for NRIs include:-

• They can purchase on repatriation basis, without limit, Government dated securities (other than bearer securities) or treasury bills or units of domestic mutual funds; bonds issued by a public sector undertaking in India and share in public sector enterprises being disinvested by Government of India.
• They can purchase shares/convertible debentures issued by an Indian company on non-repatriation basis without any limit.
• They can purchase on non-repatriation basis, without any limit, dated Government securities, treasury bills, units of domestic mutual funds, and units of Money Market mutual Funds.
• They are not permitted to make investments in Small Savings Schemes including PPF.
• They have been permitted to subscribe to the perpetual Debt instruments (eligible for inclusion as Tier I capital) and Debt Capital instruments (eligible for inclusion as Upper Tier II capital), issued by banks in India, subject to the stipulated conditions.
• They are allowed to invest in shares of listed Indian companies in recognized stock exchanges under the Portfolio Investment Scheme; etc.

Besides, Pravasi Bharatiya Divas (PBD) is conducted every year by Ministry of Overseas Indian Affairs (MOIA) and its related agencies, so as to promote the participation of Overseas Indian community in India's development process, their interaction in social issues, making them aware about present as well as future business opportunities in India; etc. Recent being, the PBD 2009 which is organised by the MOIA in partnership with the State Government of Tamil Nadu and the Confederation of Indian Industry (CII). It has been scheduled from 7 - 9 January 2009 at Chennai. With its theme of 'Engaging the Diaspora: the Way Forward', this PBD focussed on subjects such as language and culture, Diaspora youth in 21st Century India, building bridges: trade and investment, Diaspora philanthropy, Education and Diaspora Knowledge Network, Media and Entertainment, increased interaction with Diaspora Women; etc. This event includes: Trade and Industry Exhibition with participation from corporates, financial institutions, State Governments, NGOs and others; OIFC Market Place for business networking and one-to-one exclusive business meetings to identify investment opportunities in key sectors; Exhibition-cum-Sale of handicrafts, including live demonstration by artisans; etc.

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