Other BriefingsIndia’s Immigration and Foreigners Bill, 2025: What Businesses Need to Know
India is considering a major legislative reform that could transform the country’s immigration framework. On March 11, 2025, the central government introduced the Immigration and Foreigners Bill, 2025, in the Lok Sabha.
The proposed legislation seeks to modernize and consolidate the existing legal framework by replacing four outdated, pre-independence era laws, including the Foreigners Act of 1946 and the Passport (Entry into India) Act of 1920.
On March 11, 2025, India’s central government introduced the Immigration and Foreigners Bill, 2025 in the Lok Sabha of the parliament. The introduction of this bill marks a major policy shift designed to align India’s immigration framework with its economic ambitions. With a strong emphasis on ease of doing business, attracting global capital and talent, and streamlining mobility, the bill is positioned to play a pivotal role in boosting foreign direct investment (FDI), supporting startups and innovation, and enabling cross-border trade and workforce movement.
Policy objectives and strategic rationale
The Immigration and Foreigners Bill, 2025, has been formulated in response to a rapidly evolving global context, where immigration intersects with national security, labor market dynamics, and international mobility. India’s growing prominence as a hub for global business, skilled migration, education, and tourism has underscored the need for a modern, technology-driven immigration system.
Key objectives of the bill include the digitization of visa issuance, registration, and monitoring processes; comprehensive tracking of the movement of foreign nationals, particularly at land and sea borders; enhanced deterrents against illegal immigration and overstaying; and the simplification of visa procedures to facilitate easier travel and residence for tourists, students, business professionals, and skilled workers.
The bill proposes the and consolidation of legacy laws into a unified framework that governs immigration, registration, surveillance, detention, and deportation. The legislation also seeks to unify and update older statutes, such as:
- The Passport (Entry into India) Act, 1920
- The Foreigners Act, 1939
- The Foreigners Act, 1946
- The Immigration (Carriers’ Liability) Act, 2000
This is intended to create procedural clarity and legal consistency across central and state enforcement mechanisms.
Structural reforms and salient features
The Immigration and Foreigners Bill, 2025 is structured into 36 clauses distributed across six chapters, each addressing critical aspects of immigration governance in India. The chapters cover a wide range of subjects, including definitions and general provisions, the regulation and registration of foreigners, enforcement mechanisms, visa categories and conditions, the establishment and functions of key immigration authorities, and legal procedures for detention, deportation, and appeal.
A key structural reform under the bill is the establishment of the National Immigration Authority (NIA), a statutory apex body responsible for immigration policy formulation and implementation. The NIA will manage a centralized digital database of foreign nationals, coordinate with state-level authorities and law enforcement agencies, and provide policy guidance on visa and border control protocols.
Digitally enabled immigration management
The bill mandates the development of an Integrated Immigration Management System (IIMS). This system will employ biometric identification, artificial intelligence-based monitoring tools, and inter-agency databases to track and manage the movement of foreign nationals. It will be integrated with airport immigration counters, land border checkpoints, and registration offices, facilitating real-time verification and enhanced mobility control.
New visa framework under the Immigration and Foreigners Bill, 2025
Under the proposed bill, India has a restructured visa regime with new categories including:
- Business visa plus: For long-term business travelers with fast-track clearance and simplified compliance.
- Startup visa: For entrepreneurs seeking to establish innovation-driven enterprises in India.
- Skilled talent visa: For professionals in priority sectors such as AI, biotechnology, renewable energy, etc.
- Investor visa: For foreign nationals committing substantial capital to Indian enterprises or infrastructure projects.
- Transit visa and digital nomad visa: Recognizing the evolving nature of global travel and remote work trends.
Mandatory registration and foreigners’ registry
Foreign nationals residing in India for more than 180 days will be required to register digitally with the National Foreigners Registry (NFR). This new digital registry is intended to replace the current Foreigners Regional Registration Office (FRRO) system, offering a more streamlined and accessible platform for compliance.
The bill also outlines the responsibilities of state governments in setting up Immigration Facilitation Centers (IFC) and collaborating with national intelligence agencies. This intergovernmental coordination is designed to improve surveillance, identify overstays, and disrupt trafficking and suspicious travel networks.
Mandatory reporting obligations for institutions
As outlined in Chapter 3 of the Immigration and Foreigners Bill, 2025—Matters Related to Foreigners—the legislation places specific reporting responsibilities on various institutions in India. All universities, educational institutions, and other entities admitting foreign nationals are required to provide relevant information to the designated Registration Officer (RO).
The RO refers to an official designated by the central government or the appropriate authority to oversee the registration, tracking, and documentation of foreign nationals residing or staying in India.
Similarly, medical establishments such as hospitals, nursing homes, and other healthcare facilities offering lodging or inpatient treatment are mandated to report details of any foreign national receiving indoor medical care. This obligation also extends to attendants accompanying the foreign nationals and availing of lodging or sleeping arrangements within the premises. These provisions aim to ensure accurate tracking and documentation of the presence and movement of foreign nationals within the country.
Stringent penalties for non-compliance under Immigration and Foreigners Bill, 2025
The bill introduces robust punitive measures for violations of immigration norms. Under Chapter 5: Offences, Penalties and Appeal, individuals arriving in India without valid documentation may face imprisonment for up to five years along with a fine of INR 500,000 (US$5,776.6). The use of forged or counterfeit documents could attract imprisonment ranging from two to seven years, accompanied by fines between INR 100,000 (US$1,155.3) and INR 1 million (US$11,553.2).
Those who overstay their visa or breach visa conditions may be penalized with a jail term of up to three years and a fine of INR 300,000 (US$3,465.97). Additionally, individuals found transporting foreigners lacking proper documentation may incur a fine of INR 500,000 (US$5,776.6) and risk having their vehicles confiscated.
The bill also clarifies that foreign nationals holding dual citizenship will be recognized as citizens of the country corresponding to the passport used for entry into India.
Implications for business and investment climate
The Immigration and Foreigners Bill, 2025 is expected to positively influence India’s business environment by improving immigration processes and fostering investor-friendly policies. By centralizing immigration procedures and introducing a single-window clearance system, the legislation addresses a critical concern raised by foreign enterprises—namely, procedural and regulatory difficulties in India. The faster processing of business and investor visas is likely to facilitate smoother market entry and expansion for foreign firms.
A significant benefit of the bill lies in its potential to attract global talent. The Skilled talent visa aims to bring in highly qualified professionals from critical growth sectors such as digital infrastructure, green energy, and cybersecurity. This will not only enhance the domestic talent pool but also support business scalability, particularly for multinational companies and tech-driven startups.
Support for startups and innovation-driven growth
The Startup Visa provision is designed to enable foreign entrepreneurs to establish and grow ventures in India. This aligns with India’s ambition to become a global innovation hub and will strengthen the country’s position in cross-border technology transfer, research collaboration, and venture funding. The policy is expected to fuel new business formation, promote international partnerships, and support the broader objective of the economy.
Investor confidence and long-term capital engagement
The bill offers greater clarity and stability in immigration law, which may help improve investor confidence. The Investor visa, as mentioned in the bill, provides a path for long-term residency to individuals committing substantial investments in India. This could further boost FDI in India’s key sectors such as infrastructure, manufacturing, renewable energy, and real estate. The simplified procedures and reduced compliance burdens may also encourage deeper capital flows from institutional investors such as pension funds, sovereign wealth funds, and private equity firms.
Facilitation of business mobility and trade
The digitization of the immigration system is set to enhance business mobility within the country by enabling quicker movement of personnel across borders. This is particularly beneficial for industries with high levels of international collaboration, such as logistics, pharmaceuticals, agriculture, and energy. Multinational corporations operating regional supply chains from India are likely to benefit from the improved mobility infrastructure.
Growth opportunities for mobility service providers
The reforms introduced under the bill are also expected to create new avenues for immigration consultancies, legal services firms, HR outsourcing providers, and compliance technology platforms. As businesses adapt to the new immigration landscape in India, there will be increased demand for advisory services, legal representation, documentation support, and digital compliance tools.
Regional and sectoral development impact
The new bill intends to stimulate regional economic growth by allowing greater participation of state governments in implementing immigration policies and establishing facilitation centers. States with emerging industrial hubs, special economic zones (SEZ), or technology parks stand to benefit from enhanced access to international expertise and investment. This, in turn, can accelerate growth in high-potential sectors such as electric vehicles (EV), smart cities, green infrastructure, and digital services.
Conclusion
India’s Immigration and Foreigners Bill, 2025 presents a pro-business and investment-friendly reform, aimed at aligning its immigration infrastructure with global standards. By facilitating legitimate mobility, attracting global capital and talent, and reducing friction in business travel, the bill enhances India’s competitiveness in the global economic arena.
(US$1 = INR 86.55)
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