Sweeping changes to India’s regulations for Overseas Citizens of India (OCI) cardholders will now impose stricter controls on activities and reclassify them as foreign nationals, as outlined in a March 4 bulletin from India’s Home Ministry. These changes impact travel, business, religious activities, and more for the Indian diaspora.
OCI cardholders, who were previously afforded many privileges similar to Indian citizens, must now obtain permits for various activities and travel to certain parts of India, including restricted areas like portions of Jammu & Kashmir, Arunachal Pradesh, and parts of other northeastern states. This shift marks a significant departure from the previously relaxed regulations that allowed OCI cardholders to participate in India’s social and economic activities with relative ease.
“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,” the Home Ministry stated. This clarification designates them as foreign nationals and redefines their legal standing in India. Previously, OCI cardholders were treated similarly to Indian citizens in many respects, but the new policies set them apart.
George Abraham, vice chair of the Indian Overseas Congress, described the situation as disappointing. “This is really a setback for OCI cardholders and the Indian diaspora,” he told *India-West*. “We always felt as though we were moving towards dual citizenship, but now the government is saying it will treat us like foreigners.”
The bulletin from the Ministry stressed that OCI cardholders must receive special permission for various activities, including missionary work, journalistic endeavors, and certain religious activities, particularly those related to promoting a Muslim agenda, termed as “Tabligh.” In addition, mountaineering activities and access to restricted areas now require formal government approval.
These restricted areas include the entire state of Arunachal Pradesh, parts of Himachal Pradesh, and sections of Jammu & Kashmir, Manipur, Mizoram, Sikkim, Nagaland, as well as parts of Rajasthan and Uttarakhand. This means that regions with significant geopolitical sensitivities or those requiring special permits for foreigners will be off-limits unless explicit permission is granted.
Additionally, the new rules introduce limitations on inter-country adoptions by OCI cardholders and introduce stricter criteria for obtaining higher education in India. OCI cardholders living in India must report any changes in their residential address or occupation to the Foreigners Regional Registration Officer or Foreigners Registration Officer by email.
However, the Indian government also offered some minor concessions to OCI cardholders in the bulletin. The cost of entry to national parks, wildlife sanctuaries, historical sites, museums, and national monuments, as well as domestic flight fares, will now be in line with those charged to Indian citizens. Despite this, these concessions are seen by many as superficial in light of the other significant restrictions.
Thomas Abraham, chairman of the Global Organization of People of Indian Origin, expressed concerns about the impact on the business community. “The regulations are burdensome for OCI cardholders wishing to do business in India,” he told *India-West*, noting that OCI businesspeople previously enjoyed near parity with Indian citizens when conducting business. The reclassification of OCI cardholders as foreign nationals subjects them to more bureaucratic processes, including the requirement to obtain various permits and licenses, which could impede business operations.
Furthermore, the regulations add hurdles to the real estate market, a sector that has been fueled by diaspora investment. OCI cardholders, who previously could buy and sell property with relative ease, now need special permission from the Reserve Bank of India for any property transactions. Additionally, foreign nationals, including OCI cardholders, are still prohibited from purchasing agricultural land, a restriction that remains unchanged.
“This sends a negative message. It is not a step forward in reclaiming the Indian diaspora to engage with India’s development,” said George Abraham, highlighting the continued prohibition on agricultural land purchases. He also pointed out the restrictions on religious freedom, especially for minority communities. “If you go to a church while visiting India, you could be accused of doing missionary activity. These are constraints on freedom of religion,” Abraham said, mentioning similar limitations imposed on Muslims.
The rules also affect journalists, raising concerns about press freedom. “If you write an article critical of India, you may never be allowed to return,” said George Abraham. This is particularly concerning given the global attention to India’s political landscape, including recent coverage of large-scale farmer protests. Many international journalists have criticized the Indian government’s handling of the protests, and Abraham noted that the new regulations may be aimed at shielding the government from external scrutiny. “It is a totalitarian move prohibiting the diaspora from expressing their views,” he said.
The timing of the regulations has led to speculation that they are part of a larger strategy under Prime Minister Narendra Modi’s administration to push the agenda of the Rashtriya Swayamsevak Sangh (RSS), a right-wing Hindu nationalist organization. “This government is not upholding the values of the Indian constitution. It is not consistent with the democracy we are so proud of,” added Abraham.
Business leaders in the Indian American community are also expressing apprehension. The complex bureaucracy involved in obtaining permits for foreign nationals, especially for conducting business, is seen as a deterrent for diaspora engagement. Thomas Abraham highlighted regulations that require foreign nationals to divulge their research findings to the Indian government, which could lead to competitors gaining access to valuable information.
Moreover, the real estate market may face significant challenges due to the new rules. A recent Indian Supreme Court ruling on February 26 determined that anyone not a citizen of India must seek permission from the Reserve Bank of India for any property transactions. This ruling, combined with the new regulations, creates additional barriers for OCI cardholders. “This will create problems for India’s real estate industry,” said Thomas Abraham. “If there are hurdles here, we will just pack up and go elsewhere,” he added, suggesting that diaspora investment in India may decline.
As the new regulations come into effect, the Indian government faces growing backlash from the Indian diaspora, particularly those who have long-standing ties to their homeland. The restrictions imposed on OCI cardholders, reclassifying them as foreign nationals, may significantly impact their ability to engage with India economically, socially, and culturally. The long-term consequences of these regulations remain to be seen, but many in the Indian diaspora feel the government is moving in the wrong direction.
