To boost foreign exchange remittance and capital inflows across sectors, the government on Thursday approved a proposal allowing investment by non-resident Indians (NRI) to be deemed as domestic investment on a par with investment made by residents. This means NRI investment will not be included in the category of foreign investment.Since NRI investment made under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) regulations is on non-repatriable basis, it needs to be clearly provided that such investments, for the purposes of FDI policy, are domestic investments, an official statement said.

Source - http://www.financialexpress.com