The United States has unveiled a new immigration initiative, the Gold Card, aimed at wealthy foreign investors, providing a streamlined path to US citizenship through a $5 million (approximately Rs 43 crore) investment. This program is anticipated to succeed the existing EB-5 visa, which requires a minimum investment of $1 million and the commitment to create at least 10 jobs within the US. Other nations, including India, have their own visa programs designed to attract foreign investors, with India’s model known as the Permanent Residency Status (PRS) scheme.
The EB-5 visa serves as a temporary visa that can be a stepping stone to obtaining a Green Card and, ultimately, American citizenship.
Recent reports indicate that approximately 3,800 Indians have utilized the EB-5 visa over the past decade to establish residency in the US.
It is important to note that the US Gold Card, similar to the EB-5, is not a passport but a temporary stay permit, which aims to facilitate a quicker route to citizenship.
Likewise, India’s PRS scheme allows foreign investors to reside temporarily in India under specific conditions; however, it does not confer citizenship and is subject to stricter requirements than the US’s forthcoming initiative.
KEY DIFFERENCES BETWEEN THE GOLD CARD AND EB-5
On February 25, the Gold Card program was announced, though specifics remain limited. What is known is that it mandates a $5 million investment from non-American investors and will simplify their pathway to US citizenship.
The Gold Card proposal has faced criticism, with Commerce Secretary Howard Lutnick labeling the EB-5 program as “nonsense” and “fraudulent,” arguing that it offered an easy and cheap route to a Green Card.
A Green Card, or Official Permanent Resident Card, permits holders to live and work indefinitely in the US.
The EB-5 program, established in 1990, provided an avenue for foreign investors to gain US residency—not citizenship—by investing a minimum of $1,050,000 (or $800,000 in challenging economic zones) and generating jobs.
Lutnick emphasized that the Trump administration envisioned replacing the EB-5 program with the Gold Card, which, despite requiring a higher investment, would come with enhanced advantages.
There is also a renewed focus on the H-1B visa, frequently utilized by Indian professionals seeking employment in the US.
INDIA’S PERMANENT RESIDENCY STATUS (PRS) FOR FOREIGN INVESTORS
Similar to the EB-5 in the US and the new Gold Card proposal, India’s PRS scheme provides a long-term residency option for foreign investors. Launched in 2016, this program does not offer a pathway to Indian citizenship.
To qualify for the PRS, foreign investors must inject a minimum of $1.1 million (Rs 10 crore) within 18 months or approximately $2.8 million (Rs 25 crore) within 36 months through the Foreign Direct Investment (FDI) route, according to governmental sources.
Additionally, the investment must generate employment for at least 20 resident Indians annually.
Successful applicants are granted a B-1 (Investor) visa without the necessity of registering with local Foreigners Regional Registration Officers (FRRO) or Foreigners Registration Officers (FRO).
Upon meeting investment and job creation conditions, investors can apply for PRS online through the FRRO.
PRS holders are permitted to purchase one residential property for personal use and are exempt from typical minimum salary requirements for foreign workers in India.
Furthermore, a B-1X visa can be issued to the investor’s spouse and dependents, granting them similar privileges tied to the investor’s business visa.
The B-1X visa allows family members to work in India’s private sector or pursue studies without requiring a separate visa.
This initiative aims to bolster foreign investment in India and support the Make in India movement, as stated by the Home Ministry in its 2016 announcement.
COMPARATIVE ANALYSIS OF INVESTOR VISA PROGRAMS: US AND INDIA
A significant distinction between the US and Indian visa programs lies in the US Gold Card, which increases the likelihood of citizenship for investors, while India’s PRS solely allows for a long-term residency of up to 10 years, with options for renewal.
The Gold Card requires a $5 million investment, substantially higher than the Rs 10 crore threshold set by India’s PRS.
However, the PRS scheme imposes rigorous conditions: investors must create jobs, and the program excludes Pakistani citizens or individuals of Pakistani descent. In contrast, the US initiative may open doors to wealthy investors from various countries, with potential limitations to be announced in the future.
Moreover, the PRS is not a guaranteed right and can be invalidated if the investor fails to meet investment or employment obligations, engages in criminal activities, or is declared mentally unfit by a court.
In such instances, the investor and their family would be required to leave India within three months, with any owned properties needing to be sold within a year as per Indian FEMA regulations.
THE APPEAL OF TRUMP’S GOLD CARD
Reports suggest a lack of interest in India’s PRS scheme; it reportedly had no applicants in its first two years, as per sources from 2018.
Conversely, Trump’s Gold Card could see higher demand, enticing investors with the allure of American citizenship, highly sought after across multiple nations.
Many European Union countries and Canada also provide pathways to permanent residency for foreign investors, rendering their programs attractive to affluent individuals.
Therefore, while India offers a version of the Gold Card, the promise of US citizenship is a key factor driving investor interest, including from Indian nationals.
