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India's New OCI Rules: A Major Setback for NRIs?

27 September, 2024 - 12:18PM
India's New OCI Rules: A Major Setback for NRIs?
Credit: hindustantimes.com

The global overseas Indian community, 32 million strong, is reeling from what feels like a seismic shift. New rules introduced by the government have stripped OCIs (Overseas Citizens of India) of many of their privileges. Once enjoying near-equal status with Indian citizens, they now find themselves reclassified as “foreign nationals.”

Outrage has erupted across the NRI diaspora, with many feeling blindsided by the changes to the OCI rules. While some argue that the restrictions aim to control security threats, any believe they are excessive.

Aditya Arora, an NRI in Germany, is grappling with the fallout. His wife and children recently became foreign nationals, but he now finds himself stuck. “I had to renounce my Indian citizen ship, but with the changes, I’m in limbo.”

Sudhir J, an OCI holder who lived in the US and has now returned to Bangalore, said, “Reclassifying us as foreign nationals has created endless bureaucratic hurdles. Simple things like travel, business, or religious activities now require permits. Real estate transactions are restricted. It feels like the government is pushing us away when they should be welcoming our investments.”

Subhas Balappanavar, coordinator of the NRI Grievances Forum in Arizona, called for legal safeguards to protect NRI investments in India.

Sandeep S, an NRI in California, said that OCIs are major contributors to India’s FDI. “We send billions in white money back home. This isn’t just about security, it’s about trust. If the government keeps changing rules, investors will be driven away,” he said.

Community feeling

The OCI community feels betrayed. From business investments to personal ties, NRIs and OCIs have long been a bridge between India and the world. As they face hurdles, they’re left wondering—has India turned its back on them?

In a major policy turn, the Indian government has introduced tighter rules for Overseas CItizens of India-OCI- re classifying them as foreign nationals.

The new rules, put out in a circular from the Indian Home Ministry on March 4, affect many aspects of life for the Indian diaspora-from traveling to business activities and religious engagements.

The Impact on NRIs

OCI card holders, who had the similar rights as any Indian citizen, must now obtain special permits for certain activities.

While visiting India, they are urged to restrict themselves from areas like Jammu and Kashmir and Arunachal Pradesh, doing any missionary work, and certain other religious activities.

Even businessmen have to face additional bureaucratic hurdles as the new rules make it mandatory for them to apply for permission for acquiring and selling property and business ventures in India.

These changes have caused ripples among the Indian diaspora, leaving alienated from their homeland. To some who would wish to visit family or participate in cultural or religious events, these regulations brought in logistic challenges and emotional distress.

OCI Rules: New Hurdles

We have always felt so closely connected with India, and now it feels like we are being treated like outsiders.” Key Changes to the OCI Regulations: Citizens holding OCI cards now require permission in order to travel to some restricted areas.

The new business regulations bring greater restrictions on the disposal and acquiring of property as well as conducting business, especially for non-resident Indians.

The rules may further hurt the real estate market, as a OCI cardholders who had relatively easy access to buying and selling property in the country would now need to seek special permission from the Reserve Bank of India first for the same.

The activities defined as “missionary” require govt permissions. Most especially, such activities pertain to Islam., This is seen as a threatening move against religious freedom by the minorities. These people now fear that going to a place of worship could make them a suspect.

These new rules, could be a turning point for the OCI-card holders since they may reconsider their relations with India on social and economic fronts. “If there are too many hurdles, we will just pack up and go elsewhere”, warned Thomas Abraham, chairman of the Global Organization of People of Indian origin.

While the dust settles slowly, the real implications are yet to be seen, for many. However for the Indian diaspora, the feeling remains clear: they are now foreigners in their own land.

India's New OCI Rules: A Major Setback for NRIs?
Credit: indicanews.com
India's New OCI Rules: A Major Setback for NRIs?
Credit: sbs.com.au
Tags:
Overseas Citizenship of India Citizenship Indian people Overseas Indians OCI NRI India Diaspora government Rules regulations travel Business investment
Maria Garcia
Maria Garcia

Editor

Passionate editor with a focus on business news.