Why Is Investing In India A Great Option For NRIs?
If you’re an NRI looking to invest in India then this blog is for you. Understand the benefits of investing in the Indian market. Learn more about the investment options for NRIs.
April 18, 2024
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The Indian economy has consistently ranked in the top 5 the fastest growing economies in the world over the past 3 decades. Even with the pandemic, the Indian economy is projected to grow by 8.8% in 2021 according to the IMF. Some Indian economy facts:
When it comes to purchasing power parity, India is the 3rd largest economy to make the list
Seventh largest in terms of nominal GDP - Better than Canada & nearly as good as the US
Only trillion-dollar economy to be in the top five
But does this mean there’s a clear benefit to investing in India if you’re an NRI? And what are your options? Well, this blog will answer all these questions and more! Let’s start off by understanding why you should invest in India.
Why Should NRIs Invest In India?
NRIs invest in India to create a nest egg, retirement plan, familial responsibilities, and more. Here's why you should invest in India:
The Value Of Currency
Even though the Indian economy has been booming over the past few decades, the power of currencies such as the USD, Pound sterling, and the Euro has steadily increased when compared to the rupee.
Currency
Amount
Value in INR (2010)
Value in INR (2020)
USD
$1,000
₹45,085
₹74,240
Pound sterling
£1000
₹71,660
₹97,417
Euros
€1,000
₹60,590
₹87,901
Regardless of the interest rates, the value of your USD, Pound sterling, or Euro investments is likely to grow. This would mean that you will be able to earn better returns.
A point to note, however, is that the USD remains the undefeated currency. Its value rarely fluctuates and the INR is one of the few currencies that has maintained a steady exchange rate with the USD.
Diversification
Apart from the obvious geographical diversification, you can diversify your portfolio with investments such as equity funds, debt funds, liquid funds, stocks, and more across sectors & industries.
Speaking to a wealth coach can help you go beyond traditional investments & get the best of investment opportunities such as digital gold & Peer-to-Peer lending.
The beauty of economic progress & growth is that newer and better forms of investment options can develop & prosper. One such investment option is P2P lending.
P2P investments have historically performed better than bank FDs with benefits such as:
Thoroughly vetted borrowers
Lucrative interest rates
Low minimum investment amount
The market projections indicate that P2P investments could be a $5 billion industry by 2023.
Indian banks provide better interest rates than the US, Australia, Japan, China, Saudi Arabia, and many other countries! Sounds surprising, right? But most NRIs aren't aware of this fact and end up letting their money stagnate in the US or Europe.
Retirement
Setting up a retirement plan either by investing in mutual funds & stocks or by buying real estate is easier & cheaper in India as compared to countries like the US. You can also consult a Cube Wealth coach or download a Cube Wealth application.
The historical trends suggest that long term investments in the Indian market can give better returns.
6 Investment Options For NRIs
Mutual funds
Indian Stocks
P2P lending
Govt. Bonds & Securities
NPS
Real estate property
How Cube Wealth Simplifies Investments For NRIs
If you're putting off your Indian investments for a later date because the process is complicated, think again. The Cube Wealth app makes it very simple & easy for NRIs to invest in India.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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