India is considered among one of the fastest-growing economies. Saving in rupees can be a great option for NRIs. Here I will explain why NRI should invest in India, also in which ways NRIs should invest in India.
For a better and safe future
One of the biggest reasons why NRIs choose to invest in India is that they plan long term and choose to invest in shares, stocks, mutual funds, government bonds, and securities, and real estate majorly in the country. It acts as a safe option that they can use in the future.
Interest Rate benefits
India provides high-interest rate return benefits on foreign currency. Whereas other nations like the US, England, or Germany do not provide more than 2% to 3% interest return.
Real Estate market is rapidly growing
NRIs can invest in the real estate market as the real estate market is growing at a rapid speed. If you invest in a property after a few years, that property will give you a high return on investment. You can always rent out the property and enjoy monthly incomes.
Mutual Funds
Mutual Funds are also a great option for NRIs to invest in India as in the past few years the Indian stock market has marked its place internationally by a surplus of 40% return.A few things that the NRIs must remember however are:
They can’t operate their Indian savings account after moving out of the country
They must convert their savings account into NRE or NRO account
They should not buy a joint property with someone who lives in India
I hope this answer helps you to understand why NRI should invest in India and what are some of the things they should be careful about.
The Indian economy has ranked in the top five fastest-growing economies in the world over the last 30 years. According to the IMF, the Indian economy is expected to grow by 8.8 percent in 2021, even with the pandemic. According to a PwC report, India is expected to be the 2nd largest economy in the world by 2050. This means that investing in India is a great option for investors. Read below to know why NRI should invest in India:Better Interest RatesBanks in India offer better interest rates than several other countries, such as Saudi Arabia, China, Japan, Australia, the US, etc. Interesting, right? But usually, NRIs do not know this fact and end up letting their money stagnate in Europe or the US.DiversificationBesides the general geographical diversification, you can diversify your portfolio with investments like stocks, liquid funds, debt funds, equity funds, and more across industries and sectors.The Value Of CurrencyThough the Indian economy has been booming over the past many years, the power of currencies like the Euro, Pound sterling, and the USA has increased in comparison with the rupee.
Currency
Amount
Value in INR (2010)
Value in INR (2020)
Euros
€1000
₹60,590
₹87,901
Pound sterling
£1000
₹71,660
₹97,417
USD
$1000
₹45,085
₹74,240
The value of your Euro, Pound sterling, or USD investments is sure to grow. This means that you’ll be able to earn good returns.6 Investment Options For NRIs
Most of the NRIs will have the question, Why NRI should invest in India, in their minds. I will try to
answer this question here. Over the last three decades, India's economy has continuously been
among the world's top five fastest-growing. However, does this imply that investing in India offers a
clear advantage to NRIs? NRIs invest in India for a variety of reasons, including building up an
emergency fund, saving for retirement, and taking care of family obligations.
Another reason for why should NRI invest in India is that the NRIs can diversify their portfolio by
investing in equities funds, debt funds, liquid funds, and more across businesses and sectors. India is
less expensive and easier than countries like the US to set up a retirement plan, whether through
mutual funds and stocks or through the purchase of real estate. I think you have now got the answer
to the question, should NRI invest in India.
Should NRI invest in India is a very frequent question in the mind of people. Long-term investments
in the Indian market have historically provided superior returns. If you're an NRI who plans to retire
in India, you can set up your investment in mutual funds as well as stocks in India. When compared
to rupees, currencies like the US dollar, British pound and euro have grown progressively in power.
However, the Indian economy has been booming over the past few decades.
As an answer to the question why should NRI invest in India, the NRIs can go beyond standard
investments and take advantage of investing alternatives like digital gold and peer-to-peer lending.
The beauty of progress and expansion in the economy is that new and better investment
opportunities can emerge and flourish. P2P lending is one such investing possibility. I have answered
the question, why NRI should invest in India.
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Why NRI should invest in India
Rafia Batool
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April 13, 2021
2021-04-13T09:53:03+00:00 2021-04-28T15:18:49+00:00Comment
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