NRI Investments

webgeek · Posted: Mon Mar 27, 2006 7:35 pm Post subject: NRI Investments

Most Indian Governments, in general, look for NRI's like cash cows. People who have lots of money and wish to live in luxury. Atleast, that is what they are projected as. However, NRI's are actually looking for some serious development, see and enjoy our rich culture and traditions.

If you see, the recent NRI Divas in Hyderabad attracted hundreds of NRI's. While there are some good programs (seminars, cultural programs and some delicious Indian eatables), the presence of Government representative boosting their states like any thing by projecting an image as if their state has changed completely ever since the last year NRI Divas caught my attention.

NRI investments, from the point of view of the amount of money that they can invest, is of significant importance to us. Firstly, their investment brings valuable foreign exchange (good for the Finance Ministry who is boosting itself of having the highest level of currency reserves ever). Secondly, investment is good for the State Governments (because they can bring employment opportunity alongside of setting up of industries / units). Down the lane, the Government can get huge income as taxes (you know - NRIs and foreigners are good tax payers. Don't ask me how i know this - check the amount of money collected by the US and UK in the form of taxes by non-citizens of their nations).

This is also good for banks too. Most private sector banks - particularly ICICI that i know of, has a special department that exclusively monitors and attracts NRI's in their money management. And this way, these companies mange cash more effectively.

Not all industries are equally good for NRI's. This is because not all industries require just investment. Some require constant monitoring and management failing which the investment turn out to be a loss. Thus, picking the right industry too is equally important.

There are some of my views on factors associated with NRI Investments. If you have any points to add, pls post em here..
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prasadbbabu · Telugu Puli Joined: 25 Dec 2006 Posts: 652

Webgeek had good observations.

Whoever didn't wait to the development to see first, but invested in land they gained most. Surprisingly, multifold return. Only the problem to those NRIs is that for the most part the money can not be convertable because they pay full price in foreign currency at the time of purchase but for about 10% of the paid price they get a receipt or the price on the deed. Like Webgeek mentioned that NRIs are more famous for tax paying , but at some stage the system forces them to be corrupt or brings them to the uncomfortable situation. By procastinating the investment to India on such grouds, made them to realize/suffer through lost opportunity in the realestate market.