The economic liberalisation announced through liberalised investment policies, trade policies and fiscal reforms is aimed at moving the Indian economy towards a free market system and integrating the same with the global economy. These sweeping economic reforms have won for India considerable appreciation from all corners of the world.

The underlying features of the ongoing economic reforms include decontrol and deregulation of licensing regime, procedural simplification and streamlining of the system, disinvestment in public sector, emphasis on privatisation of economic activities, drastic changes in FERA and MRTP rules, trade policy, foreign direct investment and foreign technology with minimum controls on fiscal, trade and industrial policies to provide impetus to attract inflow of foreign investment into India. The licensing requirement for almost all imports have been dispensed with except for three items in the negative list. The Indian rupee has been made fully convertible on current account. The liberalised industrial policy has brought in its wake significant changes and now no license is required to set up an industry except for six items in respect of which industrial licensing is compulsory. Four items are presently reserved for the public sector.

The ambitious growth plans on which India has embarked is based on mobilisation of considerable resources both internal and external. Non Resident Indians are known to have sizeable resources in terms of finance, scientific talent and technical know-how and keen interest is contributing to the economic development of the motherland.

While globalising the economy, the Government of India has taken special care to get increasing involvement of Non Resident Indians in the industrial development of the country. In the preceding two decades several facilities and incentives have been announced for Non Resident Indians/Persons of Indian Origin and Overseas Corporate Bodies to encourage them to invest in India, with the right of repatriation of investment and profits as well as on non-repatriation basis. Distant though they are in geographic terms, the links continue to remain strong.

Besides, the Government of India has offered a number of other facilities and incentives to Non Resident Indians/Persons of Indian Origin and Overseas Corporate Bodies to enlist their greater participation in the economic development of the country. As a result of these measures and the vast investment opportunities available to Non Resident Indians and foreign companies, the inflow of foreign investment including NRI investment has significantly increased.