India has always been a preferred investment core for NRIs because of the various attractive options that are available here. The NRI investments in India have increased in the past few years as it is becoming a prominent player in the world’s economy and has earned a substantial stake in the global platform. India has a sound presence globally which inculcates interest in NRIs for investing in Indian businesses primarily because it is considered that these companies will offer high profits with minimal efforts.
Before making any investment, the goal behind it must be clear such as –
Building financial assets in your country of origin.
Having financial security.
Preparing for retirement.
Acquiring maximum returns.
Circulating the money back to your relatives.
Therefore, the NRIs tend to invest in Bank Fixed Deposits, Mutual funds, Gold, Direct Equity, Real estate sector, Bonds/Government Securities, Certificate of Deposits and National Pension Scheme(NPS) especially who intend to return to India at some point.
Reasons why India is an attractive NRI investment center:
Fastest Growing Economy
- Indian economy has grown at a rapid rate over the years which have drawn NRIs to the country for investment purposes.
- It is predicted that in 2017 country’s GDP will reach 7.7%.
Boom in Real Estate
- With the government making the rules and regulations related to real estate flexible, many investment opportunities in this sector are available for the NRIs.
- The change in the lifestyle of the people has brought about an increase leading to a rise in construction and property investments.
- Easy availability of home loans has made it a feasible option.
- Owning property in one’s country gives an emotional as well as financial security to the overseas citizen.
Repatriation of Returns
- The RBI has made its policies extensible by allowing returns on investments to be repatriated without any problem.
- The NRIs can send up to $ 1 million each financial year from an NRO account whereas NRE assets can be fully repatriated.
- The Indian currency has been weak for some time which in a way benefits the NRIs.
- As the value of rupee depreciates, the NRI earns more against the money he/she invests.
Taxation for NRIs
- The Double Tax Avoidance Agreements (DTAA) of India with many countries, including the UAE and USA provides tax benefits to NRIs.
- This agreement attracts NRIs and their investments.
Rapid Growth of start-ups
- Indian economy is globally well known for its IT and software services as we are a major exporter of such services.
- The service sector of India is one of the fastest growing areas in the world causing a rapid growth of Start-ups which has attracted NRIs to invest in Indian start-ups.
- Investment in equities is a great way of availing benefits from the growth of the Indian organizations.
- As the people are coming to know the advantages of investment in the mutual funds, their participation has increased.
- It has been expected that the Indian Stock Market will rise to a significant level by 2020.
As a developing country, India has a booming future which makes it the best suitable NRI investment option.