President Droupadi Murmu gave assent to the Immigration and Foreigners Bill, 2025, on April 04, 2025. It has now become a law. The bill was introduced in the Lok Sabha on March 11, 2025. It was passed in the Lok Sabha on March 27, 2025, and in the Rajya Sabha on April 02, 2025.
India is contemplating a significant legislative overhaul that could reshape the nation’s immigration system. The government has further clarified that the legislation is not related to any issues concerning the granting of citizenship. The aim of this act is to strengthen national security, regulate the immigration process, and impose harsher penalties for foreigners who breach entry and stay conditions.
This act represents a significant policy change aimed at aligning India’s immigration system with its economic goals. Focusing on improving the ease of doing business, attracting international capital and talent, and simplifying mobility, the act will play a key role in enhancing foreign direct investment (FDI), fostering startups and innovation, and facilitating cross-border trade and workforce mobility.
This act consists of 36 clauses across 6 chapters, each focusing on key aspects of immigration governance in India. The chapters address definitions and general provisions, foreigner registration and regulation, enforcement mechanisms, visa categories and conditions, the roles of immigration authorities, and legal procedures for detention, deportation, and appeals.
Policy Goals and Rationale
The Immigration and Foreigners Act, 2025, has been developed in response to the rapidly changing global landscape, where immigration intersects with national security, labour market trends, and international mobility. As India’s role as a centre for global business, skilled migration, education, and tourism continues to grow, the need for a modern and technology-driven immigration system has become increasingly apparent.
The main objectives of the act include digitising visa issuance, registration and monitoring process; implementing comprehensive tracking of movement of foreign nationals, especially at land and sea borders; strengthening measures against illegal immigration and overstaying; and simplifying visa procedures to make travel and residence easier for tourists, students, business professionals, and skilled workers.
The act aims to consolidate and modernise existing laws into a unified framework that governs immigration, registration, surveillance, detention, and deportation. It also seeks to update and merge older statutes, including
- the Passport (Entry into India) Act, 1920;
- the Foreigners Act, 1939;
- the Foreigners Act, 1946; and
- the Immigration (Carriers’ Liability) Act, 2000.
This consolidation is designed to provide procedural clarity and ensure legal constituency across both central and state enforcement authorities.
Other Important Laws Concerning Foreigners
- The Citizenship Act, 1955, which governs how Indian citizenship is acquired or terminated, and also outlines the process for registering foreigners as Overseas Citizens of India (OCI) and
- The Passports Act, 1967, which regulates the issue of passports and travel documents, and manages the departure of Indian citizens and others from India.
Key Reforms and Some Highlights
National Immigration Authority A major structural reform in this act is the creation of the National Immigration Authority (NIA), a statutory body responsible for formulating and implementing immigration policy. The NIA will oversee a centralised digital database of foreign nationals; coordinate with state authorities and law enforcement; and offer policy guidance on visa and border control protocols.
Integrated Immigration Management System The act requires the creation of an Integrated Immigration Management System, which will use biometric identification, AI-based monitoring tools, and inter-agency databases to track and manage the movement of foreign nationals. The system will be connected to airport immigration counters, land border checkpoints, and registration offices, enabling real-time verification and improved mobility control.
Revised Visa System This act introduces a revamped visa system in India with new categories, including
- Business Visa Plus for long-term business travellers, offering fast-track clearance and simplified compliance;
- Startup Visa for entrepreneurs aiming to launch innovation-driven ventures;
- Skilled Talent Visa for professionals in sectors like AI, biotechnology, and renewable energy; and
- Investor Visa for those investing significant capital in Indian enterprises or infrastructure projects.
Additionally, the act introduces the Transit Visa and Digital Nomad Visa to accommodate the changing landscape of global travel and remote work.
Compulsory Registration and Foreign National Registry Foreign nationals residing in India for over 180 days must digitally register with the National Foreigners Registry, which would replace the current Foreigners Regional Registration Office system, providing a more efficient and accessible compliance platform. The act further assigns state governments the responsibility of establishing Immigration Facilitation Centres and working with national intelligence agencies. This collaboration aims to enhance surveillance, identify overstays, and dismantle trafficking and suspicious travel networks.
The legislation imposes mandatory reporting of information about foreigners by hotels, universities, educational institutions, and other entities to the designated Registration Officer— an official appointed by the central government to manage the registration, tracking, and documentation of foreign nationals in India.
Medical establishments, including hospitals and nursing homes offering inpatient care, are also required to report the details of any foreign national receiving treatment, as well as the attendants accompanying them who are using lodging or sleeping arrangements. These provisions are intended to ensure accurate tracking and documentation of foreign nationals’ presence and movement within the country.
Strict Penalties for Non-Adherence The act introduces stringent penalties for violations of immigration laws. Individuals arriving in India without valid documentation could face imprisonment for up to five years in prison and a fine of Rs 5,00,000. Using forged or counterfeit documents may lead to imprisonment for two to seven years, with fines ranging from Rs 1,00,000 to Rs 10,00,000.
Those who overstay their visa or violate visa conditions may be punished with an imprisonment of up to three years and a fine of Rs 3,00,000. Furthermore, individuals found transporting undocumented foreigners could be fined Rs 5,00,000 and face the confiscation of their vehicle.
Additionally, the act specifies that foreign nationals with dual citizenship will be considered citizens of the country corresponding to the passport used for entry in India.
Impact on Business and Investment Environment
This act is expected to enhance India’s business environment by streamlining immigration processes and implementing investor-friendly policies. Centralising procedures and introducing a single-window clearance system addresses key concerns of foreign businesses regarding regulatory complexities. The faster processing of business and investor visas is anticipated to make market entry and expansion easier for foreign companies.
A notable advantage of the act is its ability to attract global talent. The Skilled Talent Visa aims to bring qualified professionals in sectors like digital infrastructure, green energy, and cybersecurity, boosting the domestic talent pool and supporting business growth especially for multinational corporations and tech startups.
The Startup Visa provision is aimed at helping foreign entrepreneurs establish and grow businesses in India, supporting the country’s goal of becoming a global innovation hub. This would enhance India’s role in cross-border technology transfer, research collaboration, and venture funding. The policy is expected to drive new economic objectives, foster business creation, support international partnerships, and contribute to broader development goals.
Building Investor Trust and Long-Term Capital Engagement
The act provides enhanced clarity and stability in immigration law, which could help bolster investor confidence. The Investor Visa, offers long-term residency to individuals making significant investments in India, potentially boosting the FDI in crucial sectors such as infrastructure, manufacturing, renewable energy, and real estate. Simplified procedures and reduced compliance burdens are further expected to attract greater capital flows from institutional investors, including pension funds, sovereign wealth funds, and private equity firms.
Enhancing Business Mobility and Trade
The digitisation of the immigration system will improve business mobility by facilitating faster movement of personnel across borders. This is especially advantageous for industries with significant international collaboration, such as logistics, pharmaceuticals, agriculture, and energy. Multinational corporations managing regional supply chains from India are expected to benefit from the enhanced mobility infrastructure.
Expansion Potential for Mobility Service Providers
The reforms are anticipated to open new opportunities for immigration consultancies, legal service firms, HR outsourcing providers, and compliance technology platforms. As businesses adjust to the updated immigration framework in India, there would be a higher demand for advisory services, legal assistance, documentation support, and digital compliance solutions.
Impact on Regional and Sectoral Growth
This act aims to boost regional economic growth by increasing state governments’ involvement in immigration policy implementation and the establishment of facilitation centres. States with emerging industrial hubs, special economic zones, or technology parks would benefit from greater access to international expertise and investment, fostering growth in sectors like electric vehicles, smart cities, green infrastructure, and digital services.
Conclusion
The use of simplified language in the act is expected to facilitate smoother administration of its provisions and improve compliance with immigration laws among foreign nationals. It will offer strong legal support to immigration functions, agencies and officials, aid in addressing illegal migration into India and enable better tracking of overstaying foreigners. Additionally, it will help reduce the compliance burden. The act introduces pro-business and investment-friendly reforms to promote legitimate mobility, attract global capital and talent, and minimise obstacles in business travel. All this will help align India’s immigration infrastructure with global standards and strengthen India’s competitiveness in the global economic landscape.
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