Beacon Of Hope

In light of current global conditions, India presents an attractive investment destination for NRIs

Published: Thu 26 Jan 2023, 10:14 AM

India today presents itself as a great investment destination for global investors. The reasons are multi-fold. India has a stable and growing economy, it has one of the largest consumer markets, it has a huge base for talented and skilled professionals and a growing middle class. What is even more exciting, is the perception and the potential of the brand ‘India’. The Indian economy has absorbed global disruptions well and proved to be resilient to geo-political disruptions. According to several industry reports, India is set to become the world’s third largest economy as well as the third largest consumer market by 2030.

A fast-growing Indian economy offers opportunities for NRIs to invest in the country’s housing, equity markets, or simple bank deposits. Despite several challenges faced during the pandemic in the last two years, the Indian real estate market offers plenty of opportunities to invest. According to reports, a significant number of NRIs have capitalised on transparent regulations and invested in real estate in India.

The RBI allows non-resident Indians to hold accounts in Indian banks as business investors in India. There are various types of saving and deposit investment schemes based on the type of account. Joint holding is also allowed in these accounts, subject to certain limitations. This presents itself as an attractive investment avenue for NRIs who have parents or relatives in India.

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RBI has also granted general permission for NRIs investing in India, who are willing to invest money in shares of growing companies in India. They have the option to invest in mutual funds, fixed deposits, shares and debentures of companies, government securities and national savings certificate. The limit of investment, type of company and few other factors are subject to regulations of RBI and SEBI.

Highlights:

Favourable taxation policies and provisions
Loans against deposits to construct homes in India
NRIs can directly invest in the Indian equity market using their own Demat account or broker account and can deal with only one bank at a time
NRIs are allowed to invest up to five per cent of the paid up capital of the company and have 100 per cent funds at the time of buying. They need to have 100 per cent stock available to them while selling. Short selling is prohibited
This ensures that NRIs investments as well as the country’s interests are safeguarded