The Consulate General of India in New York has recently issued a clarification regarding the status of Overseas Citizens of India (OCI) cardholders. Contrary to circulating news reports, the consulate emphasized that no changes have been made to the rules concerning OCI cardholders. In a post on X (formerly known as Twitter), the office stated, “We have come across news reports spreading false information that restrictions have been placed on OCI card holders in the recent past. Friends in the Indian American community are hereby informed that no new change has been introduced in the recent past for OCI card holders.”
The Consulate General also referenced a Gazette notification from March 4, 2021, explaining that the current rules, particularly concerning OCI cardholders’ rights, remain intact. They provided a link to the FAQ page for additional clarification, underscoring that the Indian diaspora, which numbers around 32 million globally, has nothing to worry about with respect to recent rule changes. However, despite these assurances, concerns have been raised by many in the diaspora, expressing that they feel certain privileges they once enjoyed are being lost.
The recent wave of confusion stems from modifications made to OCI cardholder regulations that were introduced by India’s Home Ministry in early 2021. These changes have been seen as a tightening of controls on activities carried out by OCI cardholders, which now classify them more strictly as foreign nationals. This shift affects various areas, including travel, business, and religious activities, marking a departure from the more lenient rules that had been in place previously.
A key update is that OCI cardholders must now obtain permits for numerous activities that were once more accessible. For instance, traveling to restricted regions such as Jammu & Kashmir, Arunachal Pradesh, and other northeastern areas requires special permission. Under the new regulations, OCI cardholders are now regarded as foreign nationals, as the Ministry clarified, “The OCI Cardholder (including a PIO cardholder) is a foreign national holding a passport of a foreign country and is not a citizen of India.”
This formal recognition of OCI cardholders as foreign nationals fundamentally changes their legal standing in India. Previously, these individuals enjoyed many rights and privileges akin to Indian citizens, but the revised regulations introduce stricter limitations. George Abraham, vice chair of the Indian Overseas Congress, expressed his disappointment with the changes, saying, “This is really a setback for OCI cardholders and the Indian diaspora. We always felt as though we were moving towards dual citizenship, but now the government is saying it will treat us like foreigners.”
One of the most notable restrictions involves religious activities. The regulations require OCI cardholders to obtain special permission for activities such as missionary work, journalism, and certain religious functions, particularly those linked to promoting Islamic agendas, referred to as “Tabligh.” Additionally, activities like mountaineering and accessing certain restricted areas now need formal government approval. These areas include parts of Jammu & Kashmir, Himachal Pradesh, Arunachal Pradesh, and several other states, which are geopolitically sensitive or require permits for foreign nationals to enter.
Further restrictions have been imposed on inter-country adoptions by OCI cardholders, and the requirements for pursuing higher education in India have also become more stringent. OCI cardholders residing in India are now required to report any changes in their residential address or occupation to the Foreigners Regional Registration Officer (FRRO) via email.
Despite these stricter controls, the Indian government has introduced a few minor concessions. For example, OCI cardholders will now pay the same fees as Indian citizens for entry to national parks, museums, historical monuments, and for domestic flights. However, these changes are seen as relatively insignificant in the face of the broader, more restrictive measures.
Thomas Abraham, chairman of the Global Organization of People of Indian Origin, voiced his concerns about the implications for the business community. He highlighted that the new regulations place additional bureaucratic hurdles on OCI cardholders wishing to conduct business in India. “The regulations are burdensome for OCI cardholders wishing to do business in India,” he said. Under the new classification as foreign nationals, OCI cardholders are subject to more stringent processes, including the need for permits and licenses that could obstruct business operations. Abraham added that these regulations complicate the real estate market, where diaspora investment has played a significant role. Previously, OCI cardholders could buy and sell property with relative ease, but the new rules require them to obtain special permission from the Reserve Bank of India for property transactions.
Furthermore, the restrictions on purchasing agricultural land remain unchanged, with foreign nationals, including OCI cardholders, still prohibited from owning such land. George Abraham remarked, “This sends a negative message. It is not a step forward in reclaiming the Indian diaspora to engage with India’s development.”
Beyond business and real estate, concerns about religious freedom have also arisen. Abraham mentioned that the restrictions could impact minority communities. “If you go to a church while visiting India, you could be accused of doing missionary activity,” he said, adding that similar limitations apply to Muslims as well.
The new rules have also caused alarm among journalists, particularly those covering critical stories about India. Abraham warned that OCI journalists could face repercussions for their work. “If you write an article critical of India, you may never be allowed to return,” he said, reflecting concerns that the regulations could be a move to shield the government from external criticism, especially in light of global attention on issues like the large-scale farmer protests.
There is also speculation that these changes may align with Prime Minister Narendra Modi’s broader political agenda. Some observers suggest that these new rules reflect the influence of the Rashtriya Swayamsevak Sangh (RSS), a right-wing Hindu nationalist organization. George Abraham said, “This government is not upholding the values of the Indian constitution. It is not consistent with the democracy we are so proud of.”
Business leaders in the Indian American community share concerns about the potential negative impact on diaspora engagement. The complex bureaucratic procedures required for business activities in India could deter future investments. Moreover, the real estate sector may experience significant challenges due to the new regulations and the Supreme Court ruling, which now mandates that any non-Indian citizen must seek permission from the Reserve Bank of India for property transactions. As Thomas Abraham noted, “This will create problems for India’s real estate industry. If there are hurdles here, we will just pack up and go elsewhere.”
With the new regulations now in effect, the Indian government faces growing criticism from the diaspora, particularly those with deep connections to their homeland. Many in the Indian community worry that these rules will significantly impact their ability to engage economically, socially, and culturally with India. While the long-term effects remain uncertain, the overall sentiment is one of concern, with many feeling that the Indian government may be moving in the wrong direction.
