Hyderabad: The change in the policy of EB5 which is likely to come into force from this October will have an adverse effect on Indians. If US Govt raises minimum investment required from present $5,00,000 to $1.35 million, it may reduce Indian applicants by 80 to 90% says Vivek R. Rao, an EB5 expert, investment and immigration consultant
Mr. Rao, who is in Hyderabad in connection with a seminar “EB-5 Business Gateway to the US, US Immigration” at Grand Kakatiya on 22nd June, said interacting with the media that it might also pose another challenge to Indians, issues from the regulatory body from RBI.
EB-5 is an Immigrant investment program is an alternative way for some wealthy Indians to live their American dream. Those who, otherwise don’t have a chance to get an American Green Card, until now found it a good opportunity as it enables people to migrate to the US through a government-sponsored ‘invest in the US and get a green card scheme’. In other words, it is a “paid invitation” for non-Americans to invest and live the ‘American Dream’.
According to the EB5 investment program, the money will be invested in real estate, construction and other sectors to create jobs there. The money invested will also be returned to the investor after a stipulated period of time. The investor who gets a Green Card can do any work in the US. There is a cap. Only 10,000 EB5 visas can be issued every year. The cap for each country 700.
So far is fine, but, the big concern for India now is that the US Government plans to increase the investment from $5,00,000 to $1.35million from next fiscal. Trump administration thinks that the present limit is very low compared to other countries. The fees for a similar programme in Canada is $1 million, Australia is 4 million and in the UK $2 million. .Higher EB-5 investment requirements may reduce the number of Indian going for it. Indian administration may raise their eyebrows as such a huge investment going abroad is not so good for the nation. There may be regulatory issues from RBI observed Vivek R. Rao, an EB5 expert who has over 4 years of EB5 experience and vast knowledge of the intricacies of the EB5 process.
Throwing light on the consequences on Indians, how it affects Indians chances of getting EB-5 Visa etc and others, Rao, India head and Director of MCFI—Maryland Center for Foreign Investments, LLC said there were a lot of Indian business professionals willing to invest or start a new business in the US. Indian Children studying or working in the USA and wanted to settle in the USA. There are many Medicine Students aiming to pursue MD or any higher education in the USA universities. An equally good number of Indian Individuals from India would like to settle in the USA. Any major changes in the policies will adversely affect the interests of these individuals, hence there are greater consequences, he added.
Indians likely to hit quota for EB-5 visas for 1st time or it is already hit. The popularity of EB5 caught so much that it skyrocketed in India after our H1-B has come under the lens of Trump administration and send caution signals. Today there are more Indians than in the past chasing their American Dreams. H1B, which was on top priority until now. But, Trump tightening the norms, EB5 is being taken very seriously. But, with increase investment likely to come from this October, even that opportunity is also over.
The multi-decade wait time has sparked the interest of Indian nationals for preferring EB-5 as a viable option to their immigration woes.
Off late, India has become a major EB5 investor market. The Indian investors’ share of the EB-5 investor market has grown substantially. The number of Indians who filed for EB-5 was 86 in 2013, 99 in 2014, 239 in 2015, 348 in 2016 and 500 in 2017. It surpassed Vietnam some time ago and now it is the second largest EB-5 market after China. 1,100 visas are expected to be issued in 2019. In terms of applicants, India ranks fourth (jointly with Brazil), followed by China, Vietnam and South Korea.
The EB5 visa likely to go up and reach 1,500 by 2020 and 2,000 by 2021.
Although its market share is just five per cent, but, its potential given the vastness and potential of the Hi-net worth individuals cannot be ignored says Vivek R. Rao who represents MCFI–Maryland Center for Foreign Investments, LLC in India.
