Applicability of Partner for a NRI in Agricultural operations

[satbir singhwahi]

CAN NRI BE PARTNER IN FIRM CARRYING AGRICULTURE OPERATIONS ON LEASED LAND AND FINALLY EXPORTING THE AGRICULTURE PRODUCE?

[Dinesh Gupta]

NRIs along with other non residents are not allowed to invest into Agriculture Sectors except horticulture and Tea Plantation sectors. See, Rgulations and master circular under FEMA section.

AI Summary

NRIs generally barred from investing in agriculture, except horticulture and tea plantations, under FEMA regulations. A query was raised about whether a Non-Resident Indian (NRI) can be a partner in a firm involved in agricultural operations on leased land, with the intention of exporting the produce. The response clarified that NRIs and other non-residents are generally prohibited from investing in the agricultural sector, with exceptions for horticulture and tea plantation sectors, as per the regulations and master circular under the Foreign Exchange Management Act (FEMA).