Young NRIs and Their Investment Habits in India

The Indian diaspora-the NRI’s- are now turning homewards for investments because of the boost in Indian economy. They are also a reason for sudden influx of banking funds and investments in different forms. India offers a stable, prosperous foundation for business opportunities and investments to NRI’S and PIO [people of Indian origin]. The latest investor to take a leap in this field is the young NRI; he is ready to try out the share market, mutual funds, fixed deposits and real estate market.

Young NRIs and Their Investment Habits in India

Young NRIs and Their Investment Habits in India

The government has made it very simple and easy for the people to invest in India. The NRI’s major investment is in the real estate sector; especially the younger generation is taking a keen interest in this sector. The returns from the real estate sector in India have been consistently high and even outperformed other investment options. The Government of India has created many policies and schemes to maximize investment options for NRI/POI’s looking to invest in the real estate sector.

There are various forms of investment in India for the young NRI-

  • Non-Resident (External) Rupee Accounts- NRE;

  • Non-Resident [Ordinary] Rupee [NRO] Accounts;

  • NSC’s-National Saving Certificates;

  • FCNR-Foreign Currency Non-Resident Accounts;

  • FD’s and SCSS – Fixed Deposits and Senior Citizen Saving Scheme

There is no limit for investment and no TDS. These can be used as collaterals to take a loan. The Government of India has allowed FDI up to 100% under the automatic route in townships, housing, infrastructure and construction and development projects to increase real estate investment, generate economic activity, create job opportunities and add to housing stock and increase infrastructure. The RBI has granted permission to foreign citizens of Indian origin to purchase property (commercial/residential) in India. People can get huge tax benefits by investing in real estate.

A number of young NRI’s are buying properties and putting them out on rent, so they have an immovable asset and at the same time making money on their smart investment. The government has opened different avenues for the young investor, where he can safely invest and reap the benefits and help in strengthening the economy of his country. People need to get a proper financial consultant who can maintain their portfolio and guide them with proper suggestions.

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