The Union Cabinet has recently approved the scheme for grantingof Permanent Residency Status (PRS) to foreign investors. Underthe status1. Foreign investors will be granted temporary Indian citizenshipfor the term of their investment in India.2. Non-repatriable foreign investment will be considered asdomestic investment in India.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer?

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The Union Cabinet has recently approved the scheme for granting of Permanent Residency Status (PRS) to foreign investors. Under the status
1. Foreign investors will be granted temporary Indian citizenship for the term of their investment in India.
2. Non-repatriable foreign investment will be considered as domestic investment in India.
Which of the above is/are correct?

a)
1 only
b)
2 only
c)
Both 1 and 2
d)
None

Correct answer is option 'D'. Can you explain this answer?

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The Union Cabinet has recently approved the scheme for grantingof Perm...

Justification: Statement 1: The Residency scheme is not a citizenship
scheme for the foreign investors. So, 1 is wrong.
Statement 2: The treatment of Non-repatriable foreign investment as
domestic investment applies only to NRIs. Non-repatriable is any
investment that is not made with the intention of taking it back to the
home country. The investment is permanent in a sense.
Learning: The scheme will be applicable only to foreign investors
fulfilling the prescribed eligibility conditions and also his spouse and
dependents.
• The foreign investment should result in generating employment to
at least 20 resident Indians every financial year.
• The scheme is expected to encourage foreign investment in India
and facilitate Make in India Programme.
Benefits of Permanent Residency Status:
• Initially, PRS will be granted for a period of 10 years with multiple
entry facility, which can be renewed for another 10 years.

• It will serve as a multiple entry visa without any stay stipulation
and the PRS holders will be exempted from the registration
requirements.
• For dwelling purpose, PRS holders will be allowed to purchase one
residential property.
• Their spouse and dependents will be also allowed to undertake
studies in India and take up employment in private sector.

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The Union Cabinet has recently approved the scheme for grantingof Permanent Residency Status (PRS) to foreign investors. Underthe status1. Foreign investors will be granted temporary Indian citizenshipfor the term of their investment in India.2. Non-repatriable foreign investment will be considered asdomestic investment in India.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer?

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