News & Updates

Gulf investors have sought easier entry and exit norms and stable tax regime to enhance their investments in sectors like infrastructure and real estate in India, Economic Affairs Secretary R Gopalan said Tuesday.

"Two things came forward (after the road shows in some Gulf nations). They wanted entry and exit to be made easy and stability in the policy taxation regime. They are looking at investment in sectors related to infrastructure, manufacturing and real estate," Gopalan told reporters.

He was briefing them about the outcome of the road shows held in Dubai and Riyadh (Saudi Arabia) to attract investments from there to India.

In a major initiative to attract foreign capital and stabilise rupee, the government had last month permitted Qualified Foreign Investors (QFIs) from the Gulf nations and all EU nations to invest directly in stock markets.

A separate sub-limit of USD 1 billion for QFI investment in corporate bonds and mutual fund debt schemes has also been created.

Earlier, only QFIs from 34 FATF (Financial Action Task Force) member nations were allowed to directly invest in stocks.

As per an estimate, individual foreign investors could bring in about USD 90 billion to India in the next two years.

The team lead by Gopalan met several potential QFIs, FIIs, wealth funds, PE investors and wealth fund managers and advisors during the road shows.

"We engaged them in a very extensive exercise. We hope that by this interaction we will be in a position to allay apprehensions" he said, adding, "I could see their interest in India".

The secretary said participants in the shows wanted to know more about issues like GAAR (General Anti-Aviodance Rule) and political situation in India.

"That part of the world is not agitated with it (GAAR). But going forward they are more keen to know how these provisions will operate," he said.

A QFI is an individual, group or association resident in a foreign country that is compliant with FATF standards. QFIs do not include FIIs/sub-accounts.