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.
Value in INR (2010)
Value in INR (2020)
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.
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. With benefits such as thoroughly vetted borrowers, better interest rates, higher liquidity, and a low minimum investment amount, P2P investments have historically performed better than bank FDs.
The market projections indicate that P2P investments could be a $5 billion industry by 2023.
Better Interest Rates
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.
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.
It is illegal to use your Indian savings account after you move out of the country.
NRIs are required to convert savings bank accounts into NRE or NRO accounts.
NRIs are allowed to buy properties in India. The catch - it should be a joint purchase with someone living in India.
Watch this video to know more about alternative investment options
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.
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