Non-repatriable investments allow NRIs to invest funds in India without the ability to freely transfer the principal abroad. These investments are treated as domestic under FEMA and offer flexibility in sectors with FDI restrictions. However, repatriation is limited to certain income streams and subject to regulatory approvals. Understanding these rules helps NRIs make informed long-term investment decisions.
Foreign Direct Investment (FDI) made by Non-Resident Indians (NRIs) through Non-Resident Ordinary (NRO) accounts is classified as non-repatriable under India's Foreign Exchange Management Act (FEMA). This means the principal amount and capital gains from such investments cannot be freely transferred…