The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal to this effect. According to an official release, the foreign investment should generate employment for at least 20 resident Indians every financial year.
Under the Scheme, suitable provisions will be incorporated in the Visa Manual to provide for the grant of PRS to foreign investors.
Currently, investors may stay in India for five years on a business visa. Comparatively, PRS will serve as a multiple entry visa without any stay stipulation and PRS holders will be exempted from registration requirements. Expats with PRS will be allowed to purchase one residential property in India and their spouse and children would be able to freely work or study. Following the initial 10 years, PRS could be further extended by 10 years if the investor manages a decent record.
Foreign direct investment into India climbed 23 percent to $55 billion in the 12 months through March 2016. The nation ranks 130 of 189 economies in the World Bank's Ease of Doing Business index for 2016, a marginal improvement as compared to earlier years. Unfortunately, India is still lagging behind its Asian counterparts like Hong Kong and Singapore in attracting foreign investors.