India has eased rules related to overseas investments in immovable properties by residents, a move that is widely seen to further increase Indian investments in the residential property market in Dubai.
The revised foreign exchange management rules also allow Indian companies to make investments in financial sector companies.
The UAE is a major destination for such individual and corporate investments from India.
Indians are also in the top tier of investors in the property market in Dubai.
London is the other favourite destination for Indians to buy properties.
“In view of the evolving needs of businesses in India, in an increasingly integrated global market, there is a need for Indian companies to be part of the global value chain,” India’s finance ministry said, while announcing the changes.
“The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics,” the ministry said.
The easing of rules related to foreign exchange management followed extensive consultations between the finance ministry and India’s central bank, the Reserve Bank, to simplify these regulations.
In the context of soaring property investments by Indians in overseas markets such as the UAE, the Ministry clarified that ‘extant regulations pertaining to overseas investments and acquisition and transfer of immovable property outside India have been subsumed within these rules and regulations.”
The notification on the revised rules made it clear that various overseas investment-related transactions that earlier needed Indian government approval can now be transacted automatically and at will.
The Ministry said the changes will “significantly enhance Ease of Doing Business” with India.
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