India to grant residency to rich foreigners

India says it will grant residency to foreigners who make a substantial economic contribution to the country.

It is part of the government's plan to attract more overseas investment.

Investors must put $1.5m (£1.1m) into the nation's economy over 18 months or $3.75m over three years. They must also create jobs for at least 20 Indians each financial year.

In return, they will get a 10-year visa, residency for their spouse and children, and be able to buy a home.

Foreigners must currently re-register every year - creating a slew of paperwork - and usually need a sponsor.

The scheme will reportedly not be available to Chinese and Pakistani citizens.

India is ranked 130th in the World Bank's Ease of Doing Business index.

It is the fastest growing major economy in the world, but its young population means it needs to create about 10 million jobs a year to prevent unemployment increasing.

Earlier this year, Prime Minister Narendra Modi announced an overhaul of foreign ownership rules in another move to attract overseas investment.

Airlines and some defence industries can now be 100% foreign owned. and for overseas retailers, rules were relaxed that required 30% of what they sold to be Indian-sourced.