Investment Opportunities for NRI Entrepreneurs in India
India has become an attractive investment destination on account of the growing popularity of Indian leadership and the country’s improved foreign relations
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By end of 2018, the economy is expected to recover, as the impact of demonetisation and GST transition fade away. As per IMF estimates, India will become the fastest growing economy in the world outpacing China in 2019. IMF retained its India’ s GDP growth forecast of 6.7per cent and 7.4per cent in 2017 and 2018 respectively and pegged 2019 GDP growth at 7.8 per cent. India has typically recovered much faster than other prominent nations after global economic slowdown events such as dot-com crash, 9/11 crash or 2008 financial crisis thus showing signs of a maturing, stable economy.
Indian Equity market cap is likely to rise to $6.1* trillion by 2027 and hence India is expected to grow @10.1 per cent* CAGR for the next 10 years. India is still behind most developed and emerging nations in some of the key industries and offers a huge potential runway for foreign investors.
FDI in India
Under Liberalized FDI Regime Most of the sectors are under automatic approval route and sectoral caps across major sectors including defence and aviation has been increased to 100 per cent. Under Infrastructure Push, a five-year plan has been rolled out to build 83,677 km of roads under Bharatmala Project and housing for all by 2022. New Insolvency Code is also building confidence among investors and lenders. Steps taken by the current government has resulted in India ranks in ease of doing business to the current 77th position from the 142nd position in the year 2014 resulting in investors’ confidence in establishing or investing in various business opportunities in India.
Considering the resilient economy with growth opportunities and strong regulatory structure Indian markets are well placed to attract incremental investment through various avenues under Foreign Direct Investments, Foreign Institutional investors in various assets classes of Equity, Debt, Alternate investment funds, Real Estate and Estate funds.
Foreign Inward Remittance
India also being the largest foreign inward remittance receiving country during last 5 years to the tune of US $ 65-70 Billion YOY through it vast affluent Indian Diaspora across various geographies has become a lucrative destination for expats to invest in various investment opportunities in India. The current trend of depreciation of rupee against the dollar makes investment opportunities in India more viable and gives considerable arbitrage opportunity across asset classes.
India offers various avenues of investment for NRIs – Ultra HNI, Business Owners and Affluent retail NRI investors in extensive investment product suite offered by various financial institutions in India.
NRIs and Overseas Citizen of India (OCI) on repatriation basis without limit invest in instruments like Government dated securities, Treasury bills of Domestic Mutual funds, Bonds issued by PSU in India, Bonds issued by infrastructure debt funds; listed non-convertible/redeemable preference shares & Debentures, National Pension schemes governed by Pension fund regulatory authority. Additionally, they can also invest in units of money market mutual funds on non–repatriation basis.
Direct Equities For NRI’s
By end of 2018, the economy is expected to recover, as the impact of demonetisation and GST transition fade away. As per IMF estimates, India will become the fastest growing economy in the world outpacing China in 2019. IMF retained its India’ s GDP growth forecast of 6.7per cent and 7.4per cent in 2017 and 2018 respectively and pegged 2019 GDP growth at 7.8 per cent. India has typically recovered much faster than other prominent nations after global economic slowdown events such as dot-com crash, 9/11 crash or 2008 financial crisis thus showing signs of a maturing, stable economy.
Indian Equity market cap is likely to rise to $6.1* trillion by 2027 and hence India is expected to grow @10.1 per cent* CAGR for the next 10 years. India is still behind most developed and emerging nations in some of the key industries and offers a huge potential runway for foreign investors.
FDI in India
Under Liberalized FDI Regime Most of the sectors are under automatic approval route and sectoral caps across major sectors including defence and aviation has been increased to 100 per cent. Under Infrastructure Push, a five-year plan has been rolled out to build 83,677 km of roads under Bharatmala Project and housing for all by 2022. New Insolvency Code is also building confidence among investors and lenders. Steps taken by the current government has resulted in India ranks in ease of doing business to the current 77th position from the 142nd position in the year 2014 resulting in investors’ confidence in establishing or investing in various business opportunities in India.
Considering the resilient economy with growth opportunities and strong regulatory structure Indian markets are well placed to attract incremental investment through various avenues under Foreign Direct Investments, Foreign Institutional investors in various assets classes of Equity, Debt, Alternate investment funds, Real Estate and Estate funds.
Foreign Inward Remittance
India also being the largest foreign inward remittance receiving country during last 5 years to the tune of US $ 65-70 Billion YOY through it vast affluent Indian Diaspora across various geographies has become a lucrative destination for expats to invest in various investment opportunities in India. The current trend of depreciation of rupee against the dollar makes investment opportunities in India more viable and gives considerable arbitrage opportunity across asset classes.
