Why India is the right place to invest for NRI’s and Residents

With India’s economy experiencing a paradigm shift that clocks in robust growth year after year, Indian and foreign investors on the lookout for capital gains consider it to be one of the best growth stories in the world. 

A stable annual growth rate, booming capital markets and rising foreign exchange reserves make for attractive market opportunities with promises too tempting to ignore.

Government policies over the last decade have significantly strengthened India’s economic standing, and this has played a large part in making it one of the strongest global economies. Additionally, the country is a hot-bed for start-ups in the fields of e-commerce and technology, alongside Japan, China and Hong Kong.

Why choose India

Since the introduction of Digital India, the country has embraced all forms of digitalization, thus exhibiting its adaptability to change.

Even when it comes to monetary transactions ‘an area Indians had been, until recently, conservative’ the thrust that came from demonetization nudged Indians to adopt digital modes of payment too. Local tech start-ups have pushed the boundaries of innovation as well, encouraging investors across the globe.

Additionally, initiatives such as Skills India and Make in India have made a significant impact in making the country an attractive investment arena. Make in India, specifically focuses on domestically made products, not just ‘for India,’ but ‘for the world.’

A little caution

On the flipside, it is worth mentioning that India has serious risks and issues to tackle compared to other emerging economies

India’s middle class is growing and so is their consumption, yet, there is massive inequality that leaves millions of people at the bottom of the strata. 

Government policies often hinder opportunities that are well within reach, and the lack of good infrastructure creates a huge bottleneck when it comes to growth. The lack of sanitation, crowded roads, weak transport network and no real fixes in sight provides a hindrance to ready investors. 

There are more problems to consider, but while reforms remain in the planning phase, on the economic front, it is business as usual, with consistent efforts to maximize productivity gains and return on foreign as well as domestic investments. The recent implementation of GST helps to remove trade barriers and assist in growth, much like the efforts to address older bad debts and non performing loans.

Welcome, world

The Government of India is taking several steps to minimize discrimination against foreign investors.

From reducing capital gains rate with a view to liberalize the Indian market, the government has amended the exchange control regulations previously applied to businesses with large foreign participation. 

The lifting of the ban against using foreign trademarks or brand names, the lowering of the corporate tax rate for foreign firms and the exemption of both, Indian and foreign firms from export earnings are just a few of them. Additionally, the RBI now allows 100% of foreign investment for infrastructure such as roads and bridges. 

The fall in the prices of crude oil from is another attractive reason why investors are attracted to India. The fall aids in strengthening the rupee, thereby allowing for significant savings on import and setting India up in terms of financial stability. 

In terms of inflation, the RBI has forecasted a downfall in comparison to its previous estimate and have adopted several measures to keep inflation in check, such as control over import-export along with food subsidies and low commodity prices. All this translates to the stock market performing well which ensures that investments will be on the rise.

Future focus

One of the key events that took place in India this year, the General Elections did see a volatile first half of the year.

However, as the new government focuses on fiscal stimulation, attention will once again be paid to the economy, leading to positive outcomes for investors. 

Coming to real estate, numerous policies in 2018 have shaped this industry this year, guaranteeing transparency and quality of construction to investors and buyers alike. One of the biggest real estate trends showed a global increase in investments by foreign investors, thus improving India’s credibility and making it an attractive destination for FDIs, thanks to a solid regulatory framework. 

Contributing to the real estate boom is the ever increasing demand for homes, coupled with new RERA laws compelling builders to revamp their business models to assure a mandatory date of completion of projects. The accountability and transparency demanded by these laws ensure that Indian real estate industry promises a higher, sustainable demand. 

With all these as contributing factors to India projecting the best GDP growth trajectory of all major economies in the coming years, it builds a strong case for investing in India and it is highly likely that the country will offer investors a strong foothold as they choose from their investment options.

Most of us associate financial freedom with not needing a job. But while a complete retirement may be a few years away, here are nine levels of progress that you can measure yourself against.

In your 20s and 30s

Level 1. You get to decide how to spend your salary.

This happens as soon as you get a job in some cases. In most cases an education loan or family may have a prior claim on your salary. But you can quickly get to a stage when you can cover all that and be able to spend on more than just necessities.

Level 2. You can quit a toxic job and tide over till you get a new one in 3-4 months.

When your savings get to a point where you can ‘walk away’ from a job that’s more stress than it’s worth. We are not saying that you quit on an impulse, but you don’t have to suffer in silence either. Having invested in achieving skills that are in high demand will make this happen quicker.

Level 3. You can take a year, or two, off without it pinching you

This is ‘explore my options’ money as against the ‘walk away’ money we talked about earlier. Take some time off to explore an alternate career, without neglecting your financial commitments over that period. You will need to take a call on whether you are going to live frugally in this period, or maintain the same lifestyle as when you had a salary coming in.

Level 4. You can take a year, or two, off and finance a passion 

When you are able to take an extended period off and not only manage your financial commitments during that period, but also have enough money to spend feeding your wanderlust, pursuing a passion, or creating a startup.

In your 40s and 50s

Level 5. Becoming debt free 

Paying off your loans is a liberating feeling – especially the loan against the home you live in. Besides releasing cash flow, this is a key financial freedom. Being debt free means that no one, but you, has a claim on your income.

Level 6. On track for quitting your job, forever, by a target date

The date may be defined by law, convention, or your own aspiration. You start by figuring out the amount required to help you maintain your lifestyle without an income stream coming in after the target quit date. At this level of financial freedom, you know that the investments you currently have, plus your investing rate will get you to your target amount by your target date

Level 7. Your current investments are enough to quit your job on your target date.

You don’t need to save and invest any more. All you need to do is to earn enough to pay for your lifestyle till then. This allows you to switch to a possible lower paying job, switch to gigs and improve work life balance.

It often comes as a surprise to many people that they are, in fact, already capable of doing this.

Level 8. You can quit your job today

You can give up on the regular salary credits and the investments you have will take care of your lifestyle for the rest of your life. You may already be at this level and not know it.

Level 9. You have more money than you need to live on

You can quit your job and your investments will not only take care of your lifestyle for the rest of your life but also be able to fund a passion – travel, charitable work, or create an inheritance.

Please take a moment to think about where you are in this journey. Every time you achieve a level, celebrate your achievement and set a plan for the next level.