NRIs in Germany Share Investment Hurdles with Shashi Tharoor During Hamburg Visit

(HAMBURG) Non-Resident Indians living in Germany pressed longtime concerns over investment hurdles, slow consular services, and property disputes in India during a meeting with Congress leader Shashi Tharoor in Hamburg in August 2025, seeking faster fixes and clearer rules. The delegation, led by Parmod Kumar of the Indian Overseas Congress (Europe), urged Tharoor to push for streamlined approvals, safer channels for cross-border investments, and faster dispute resolution. Tharoor, who acknowledged the economic weight and social ties of the diaspora, promised to raise the issues inside the party and in Parliament.

Attendees described a pattern of obstructive red tape that falls hardest on NRI investors in real estate, startups, and renewable energy. While recent policy changes in taxes and foreign direct investment (FDI) have opened some doors, participants said processes remain slow and uneven on the ground, and consular delays add to time and cost.

Several attendees based in Hamburg said they’ve put off planned investments due to unclear approvals, repeated document requests, and inconsistent enforcement across states in India.

Tone and immediate concerns from the Hamburg meeting

The tone in Hamburg was focused but firm. Diaspora professionals — entrepreneurs, engineers, and medical staff among them — told Shashi Tharoor they want to invest in India and keep ties strong, but feel worn down by repeated hurdles.

• Some described waiting months for basic consular tasks, including passport renewals, OCI card updates, or police verification links tied to property matters.
• Others stressed that property disputes often outlast business plans, with slow court timelines and fragmented local practices.
• The top ask was consistent: simpler, predictable processes that don’t change midstream.

The group pressed for:
– One-window facilitation
– Sector-specific guidance for real estate and emerging industries
– A timeline-driven path for approvals
– Stronger dispute resolution tools for ownership and tenancy conflicts

VisaVerge.com reports that diaspora investors often face a “trust gap” where new reforms promise easier access, yet day-to-day execution still involves delays and repeated visits. Several in Hamburg said the gap is especially wide in property, where paperwork keeps piling up even as tax rules improve.

Policy context and recent changes

In India’s 2025–26 Union Budget, the government removed the “deemed to be let out” tax on up to two self-occupied homes. For many NRIs, this is a relief; it reduces tax worries around keeping a house for personal use or family. Still, attendees said lower taxes don’t settle local disputes or speed up title checks. They need faster ground-level fixes to make the tax change truly useful.

Other budget and tax measures:
– The threshold for TCS under the Liberalised Remittance Scheme rose from ₹7 lakh to ₹10 lakh, easing tax on larger transfers.
– TCS on education loans was removed.
– The rule imposing higher TDS/TCS rates on non-filers was withdrawn, helping NRIs who face complications with Indian return filings when income is fully overseas.

Key FDI changes discussed:
– Insurance sector FDI cap lifted to 100% (Feb 2025), with conditions on premium investment in India.
– Space sector liberalized in 2024: up to 100% FDI for satellite components and 74% for satellite manufacturing and operations under the automatic route.

Attendees said these look promising on paper but want clear guidance and faster approvals, especially for real estate, clean energy, and early-stage tech.

Deposit and savings context:
– As of January 2025, NRI deposits in Indian banks reached about $161.21 billion, up from $151.87 billion a year earlier. While this shows continued financial support, participants said the figure masks frustration when deposits sit idle due to stalled approvals.

Public Provident Fund (PPF) concerns:
– From October 2024, extended PPF accounts held by NRIs stopped earning regular interest, and new PPF accounts can’t be opened by NRIs.
– Some existing accounts may be marked irregular, reducing the rate to 4% per year.
– NRIs therefore shifted to NRE fixed deposits, mutual funds, or the National Pension System — each move adding paperwork and tax questions.

For banking and investment rules, the Reserve Bank of India’s NRI FAQs remain the core reference for account types and repatriation rules. Readers can review account requirements and transaction limits at the official RBI resource here: Reserve Bank of India — FAQs for Non-Residents.

Advocacy points presented to Shashi Tharoor

Parmod Kumar’s delegation asked Tharoor to champion the following steps:

1. Streamline investment approvals with a single-window system and time-bound decisions.
2. Offer sector-specific facilitation, especially in real estate, startups, and renewable energy.
3. Set up stronger property dispute resolution, including fast-track channels and clear enforcement standards.
4. Improve consular services for NRIs with faster passport, visa, and OCI processing.

Tharoor said he would convey these points within the Congress party and during parliamentary discussions, noting the diaspora’s role in India’s growth and the need to cut wasteful steps that deter cross-border investment.

The Hamburg discussion also focused on consular delays and Overseas Citizen of India issues. Travelers reported:
– Waiting weeks for routine services
– Missed flights due to document timing
– Confusion over OCI rules for reissuance after a new passport

Those problems can block business schedules and family travel. For OCI processing details and forms, readers can use the official Government of India portal: OCI application — Government of India.

Practical impact on NRIs and operational details

Account and investment basics:
– NRIs use NRE, NRO, or FCNR accounts, each with different repatriation and tax effects.
– Equity and mutual fund purchases trigger KYC checks, and capital gains may face TDS.
– Investors can handle clear rules but get stuck when requirements change without notice or when banks interpret rules differently across branches.

Property-specific problems:
– Even with tax relief for up to two self-occupied homes, ground-level friction is real:
– Land records not updated
– Slow municipal responses
– Court dates that stretch for years

Requests from attendees included:
– A central digital registry that state offices actually use
– Standard contract templates to lower disputes
– Protocols for power of attorney and remote verification processed quickly by consulates

Remittances and tax compliance:
– The higher TCS threshold and relief for non-filers reduce friction, but NRIs still must check tax rules in both India and their resident country.
– Attendees asked for practical checklists that match real timelines (what can be done in two weeks vs. one month).

Personal examples illustrate the cost of delay:
– One Hamburg entrepreneur shelved a solar venture in Rajasthan after repeated requests delayed seasonal windows.
– Another spent a year resolving a tenancy dispute, only to face fresh paperwork when the local office changed staff.

Immediate actions investors requested:
– Clear timelines for approvals, published and enforced
– Standard document lists for each investment type
– Digital tracking for property cases to avoid repeat visits and lost files
– Consular service benchmarks, including target days for passport renewal, visa entries, and OCI renewals

Officials and parties commonly endorse these ideas, but attendees stressed that follow-through is what counts. Some proposed pilot programs in high-diaspora cities to demonstrate faster service before nationwide rollout.

Broader assessment and next steps

The broader policy picture is mixed. Incremental reforms in taxes and FDI point in the right direction, but the Hamburg group said core bottlenecks remain:
– Bureaucratic delay
– Uneven enforcement across states
– Weak property protection

Members urged Tharoor to push for a cross-ministry working group with hard deadlines and public dashboards.

For families and students, consular speed is equally critical:
– Missed passport windows can cause canceled trips, business losses, or school delays.
– Parents asked for simpler OCI reissuance steps for minors and seniors.

Stakeholder roles moving forward:
– The diaspora expects transparent rules, faster queues, and real protection for assets.
– The government points to ongoing reforms while acknowledging execution gaps.
– The Congress party signals it will keep pressing reforms through leaders like Shashi Tharoor.

In Hamburg, the mood was practical, not partisan. NRIs want India to succeed and to be part of that success, but they’re asking for tools that match their reality: time zone differences, limited ability to visit local offices, and lives that span two countries.

For now, the path forward lies in pushing recent reforms into daily practice:
– Firm timelines
– Well-trained frontline staff
– Easy-to-follow digital systems
– Property rules that hold in every district

If those steps take hold, the investment hurdles raised in Hamburg may finally start to shrink, and the diaspora’s growing deposits can turn into real projects on the ground.