Sixty years young India, having a GDP that is touching 9%, is tomorrow’s economic superpower. With all its companies doing decently well, the Indian Share Market has become a hot and favorite destination of investors. Liberal economic policies, an ever-growing GDP, and relatively less competition (relatively less because India, unlike the established markets of USA/Japan, is still in its infancy) – all these factors are driving the potential investors our way.
But these factors are certainly not the ONLY factors responsible for the sudden boom in the number of NRI investors in the Share Market of India. There are other factors as well that has given big reasons to NRIs to start investing in India, and through this article we intend to put some light on the available investment opportunities in India or some best investing options in India available to NRIs, PIOs & OCIs. While stating all may be beyond us and next to impossible (partly because there ARE so many factors involved!) we have tried our best to highlight a few below.
India is synonymous with the word “resilience”. The people are pliant in catastrophe and so is the Indian market. While the world was contemplating the US Market, India, after initial jitters, was back on her feet soon. This is because the Indian market, still in its early years, has not, unlike the American Market, become an umbrella market taking all the major economies in its fold. Investors are still coming in in this growing market. The resilience is mirrored in the fact that since the reformed economic policies of 1991, the economic growth rate has reached new heights. While political power in Delhi changed hands constantly resulting in diverse economic policies, the market did not, even once, even stumble, let alone collapse! Moreover, as India is becoming young day-by-day (and so is the Share Market) we hope and expect the economy to perform even better.
Secondly, since our current PM and the then Finance Minister, Dr. Manmohan Singh liberalized the economy, the two sectors that were somewhat left unattended were those of agriculture and infrastructure. But there is good news. For about two-three years now, these sectors have been given their due recognition. This, our experts at NriInvestIndia.com, hope will boost our economy a great deal. While the results are yet to be seen (we hope to see them in a couple of years from now) we are confident that the impact will be huge. Paying more attention to these two fields implies increase in production and consequently, consumption (India is also home to many poor). This will obviously lead to better standard of life and higher income levels for the Indian masses. And guess what? Higher income level means more investment and more money to be made.
Foreign Direct Investments (FDI) has proved to be a boon for the Indian economy. While the inflow of FDI has become less in the recent times, they continue benefiting us immensely. India is still a developing country and a country of many needs. FDI helps us fulfill our wants as it not only augments capital, it also brings with it better (or perhaps, the best) technology, products, services etc. It also creates scope for employment. This, of course, as mentioned earlier, leads to greater productivity and competitiveness, which in turn results in better standard of living, higher income levels and more investments.
We are sure all of you must have heard of BPO – Business Process Outsourcing. A growing fad in India, BPO is, in general, considered to be a call centre. But there is more to this global outsourcing boom than just BPO. These include research and development, manufacturing of various automobile parts etc. And this is primarily due to the increase in the confidence (of the world) in India’s skilled labour and its abilities. Again, as is the case with increased attention to agriculture and infrastructure, and FDI, outsourcing is people-oriented, resulting in better living standard, raised income and higher investments.
Fifthly, India has a strong domestic consumption level. Since majority of the Indian masses come in the “working class” category, they are surely profiting from better (and higher) pay-cheques. According to McKinsey, a consulting firm, the number of households having an average annual income of US$ 10000 is increasing by 20% per annum. The corporate world has emerged as one of the strongest industries. It is said that the Indian economy is all set to benefit in the long run from the nurturing affluence and the willingness to spend of the Indian masses.
Last, but not the least, all the reasons mentioned above will not be as worthwhile if the market is not regulated well. Fortunately, for India, the Securities and Exchange Board of India (SEBI), along with the Reserve Bank of India (RBI), regulate the market ably. Be it anything of Indian stock markets: mutual funds, Indian stocks, NRI demat accounts deposits or life insurance, the Indian Share Market has arrived on the global platform. Redressal measures, innumerable choices, no major liquidity concern for the investors and better investment opportunity – all these combined have made India a favorite amongst all. But, having said so, we would also like to inform all of you that like any other market, the Indian Share Market also has its share of ups and downs. While you can minimize your risk by heeding to the advice of a financer, you cannot completely overcome the same.
Thus, all the above dynamics, amongst many more, together, along with the fact that India is the tenth largest economy in the world and fourth largest in terms of PPP (Purchasing Power Parity), have made India a potential destination for NRI. Miscellaneous, but no less important, factors like manpower, literacy level, some of the best educational institutions, strategic location etc adds fuel to the fire. The credibility of India lies in the fact that India has never defaulted from international financial obligations. Small-scale industries and strong English language base have helped India. A recent World Bank report has predicted that Indian economy will become one of the strongest by 2050 A.D.
This is why NRIs- Non Resident Indians and PIOs – Person of India origin invest in India and (we hope) will continue doing so. One of the best brokers in NRI Investment segment is www.NriInvestIndia.com