Why NRIs Love to Invest in India

No matter how far you go, home is always where the heart is. That’s often the case with many NRIs who have left a piece of themselves behind in India. India is one of the world’s largest recipients of international remittances. This clearly indicates that most NRIs are still deeply connected to their roots.

Investing in India is a great way to create wealth while helping the country’s economy. Some NRIs plan to return to India while others simply want to participate in the Indian Economy. Moreover, it’s an opportune time to invest in India – we have a strong and stable majority government, a lot of foreign investment is flowing into the country and the world has its eyes set on the Indian market due to its immense scope for growth.

As the Founder of Cube Wealth, I often come across NRIs who are interested in investing in India. Those who connect with me, of course, learn how we’ve made this process virtually effortless on the Cube Wealth app.

Why Invest In India?

Interestingly, even those who don’t know about how easy technology has made things are investing in India. People are jumping through financial hoops to invest in India and understandably so. India is one of the most promising economies in the world and every smart investor wants a piece of the action.

The fact that India is a developing nation means we have vast potential for growth across sectors. We also have a large youthful population that can support multiple industries. India has always been a source of cheap labour and that holds true even today. All these factors seem to be encouraging more and more NRIs to invest in India and this trend is only going to grow in the future. Today there are multiple reasons for a Non-Resident Indian to invest in India. You can consult a Cube Wealth coach or download the Cube Wealth App.

Benefits Of Investing In India

To begin with, it’s a great way to protect your money from being dependent on the growth of just one economy. What also encourages NRIs to invest in India is that its a developing nation and our economy has a lot more potential for growth than mature markets.

This is true across investment modes with everything from Fixed Deposits to real estate and mutual funds now being accessible relatively easily to NRIs today. Those who are in it for the long haul may even earn a lot more returns by investing in the Indian market than they would in say a standard index fund abroad.

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How NRIs Approach Investments In India

The aim I’ve noticed is often to create a nest egg for when they return to India or for their families and children. Moreover, the best investments are those that are both logically and emotionally satisfying. When NRIs invest in India they get to invest in companies they love and help further bolster India’s economy.

Foreign investors are also a key source of capital for the Indian economy. As of now, NRIs invest in the Indian stock markets through something called a portfolio investment scheme (PIS). These schemes are governed by the Reserve Bank of India (RBI) and come with several restrictions. NRIs can, of course, use an app like Cube Wealth to make investing in India a breeze but, some of our country’s policies do leave scope for improvement.

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For example, NRI investments are subjected to tax deduction at source (TDS). While this does not discourage many investors it is still a deterrent. It would be great if NRIs are given the opportunity to invest in more Indian funds.

As of now, about eight to ten fund houses accept NRI investments in mutual funds for those residing in the US & Canada. The rules for other countries are more relaxed.

As technology makes managing investments easier it is likely that more and more NRIs will invest in India. Today one can simply automate investments and get tailored wealth advice from experts on the Cube Wealth app, in the future things will be even simpler. It is a great time to participate in the growth of the Indian Economy and grab a healthy piece of the pie while at it.

In case you are already an investor and you are looking to ensure your portfolio is on the right track, this video by The Cube Wealth team will help understand how to track your mutual fund’s performance. You can consult a Cube Wealth coach or download the Cube Wealth App.

Conclusion 

The preference of NRIs (Non-Resident Indians) to invest in India reflects a deep-rooted connection to their homeland and the myriad opportunities that the Indian investment landscape offers. Factors such as economic growth, diversification options, and a growing middle class contribute to the attraction of investing in India. Moreover, the introduction of user-friendly investment platforms, NRI-specific banking services, and regulatory improvements have made it easier for NRIs to participate in the Indian economy. While investing in India provides exciting prospects, it's crucial for NRIs to conduct proper research, assess risk tolerance, and adhere to financial regulations when making investment decisions to maximize the benefits.

FAQs 

1. What investment options are available for NRIs in India? 

Ans. NRIs can invest in various asset classes in India, including equities, real estate, mutual funds, government securities, and fixed deposits. They can also open NRE and NRO accounts for managing their finances.

2. Are there any restrictions on NRI investments in India? 

Ans. While NRIs have various investment options, some restrictions apply to certain investments, such as directly investing in agricultural land or specific financial instruments. It's essential for NRIs to be aware of these regulations.

3. How can NRIs stay informed about Indian investment opportunities and regulations? 

Ans. NRIs can access financial news, consult with financial advisors, and use online platforms specifically designed to provide information and services catering to their unique needs.

4. What are the tax implications for NRIs investing in India? 

Ans. NRIs are subject to different tax rules in India based on their income sources and the type of investment. Consultation with a tax expert can help NRIs understand the tax implications and optimize their tax obligations when investing in India. You can consult a Cube Wealth coach or download the Cube Wealth App.

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