India is an Investment Hub for NRIs | NRI Investment
India is the fastest growing economy in the world with buoyant investment climate. India has always been a favourite investment hub for NRIs simply because there are plenty of attractive options here.
Let us examine some compelling reasons:
- India is one of the fastest growing economies in the world attracting a lot of foreign investors’ attention. Annual GDP growth was at 7.55% in 2016 and this trend is expected to continue with the GDP growth expected at 7.74% in 2018, as per World Bank.
- The Indian economy has a huge domestic captive consumption base which spurs businesses to grow year on year. With consumer spending growing, India is set to be one of the largest consumer markets in the world spurring demand for many products and services.
- The Indian rupee has been stable for a while now. Even though it has depreciated by about 5% this year, a stable rupee dollar exchange rate seems likely due to the sound economic fundamentals of India at this point.
- India presents multiple investment opportunities to individual investors today – ranging from direct investments in businesses, stocks , real estate and also managed solutions such as PMS, bond funds, equity mutual funds and also select corporate fixed deposits.
- From an investment destination perspective, Indian equities and fixed income are both showing promise over the next two to three years, especially as NRIs may not get the required returns on investments in their home countries.
- The Indian stock markets expected to do well over the next three to five years horizon, as corporate earnings get better due to consumption demand and better capacity utilization.
- Indian fixed income investments also expected to deliver decent returns on the back of the country’s sound macro economic fundamentals and favorable commodity prices.
- India allows liberal remittances to NRIs – upto USD 1 million in each financial year from an NRO account and NRE assets are fully repatriable.
- India also does have Double Tax Avoidance Agreements (DTAA) agreements with many countries such as UAE, USA, etc., making it efficient to set off taxes paid in one geography against the other.
The above list does detail many reasons why India should feature in a NRI’s portfolio, even though one may not really be contemplating moving back to India. All in all India still seems like an investment opportunity worth evaluating.
Since it is an economically sound nation, investing in Indian businesses is seen as a profitable option for NRIs today who see returns higher than ever.
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