Why Should NRIs Invest In Indian Properties?

Prior to the commencement of some ‘factual’ and ‘brief’ set of reasons why NRIs should consider investing in properties of the third largest economy of the world, let me throw some light on the term ‘NRI’.

‘In simple terms, an Indian citizen residing outside India for a combined total of at least 183 days in a financial year is considered to be an NRI. NRIs are eligible to vote, and most importantly, only the income that they have earned in India is taxable in India.’

India is projected as the ‘Third Largest Economy of The World’ with a Gross domestic product (GDP) of $3 trillion.The Indian economy has witnessed a paradigm shift since the last decade and is on a robust growth trajectory. The country also houses one of the fastest-growing workforces in the world. The U.S. Census Bureau estimates that it will become the world’s largest by 2025.

Keeping all the aforementioned points in mind, the following are the reasons why an investment in Indian properties can yield a highly positive Return on investment (ROI):

The Growing Infrastructure in Indian Cities

Over the next three decades, more than 350 mn Indians will move into cities. (Source: McKinsey Global Institute). Also, the government of India has significant plans of investing into public sector enterprises and infrastructure which will boost the property values. Investments planned across the key government initiatives in various sectors:

o Highways (Bharatmala & NHDP)  – $106.5 bn

o Railways – $131.7 bn

o Ports – $61.5 bn (Port development) + $123 bn (Port-led

   Industrialisation)

o Airports – $58 bn

o Industrial Corridors – $100 bn (DMIC – phase I)

o Smart Cities – $14.6 bn

India Has A Huge Domestic Market

India’s consumer story will be led by its 129 mn urban mass consumers. (Source: Goldman Sachs Group)

Private consumption to be four times by 2025.
(Source: McKinsey Global Institute)

Impressive Upward Shift In Global Innovation Index

India jumped 4 positions and ranked 48th in the Global Innovation Index 2020 rankings
Source: World Intellectual Property Organization. 

India ranked #1 in the Central & Southern Asia Region (Source: World Intellectual Property Organization)

India ranked 3rd amongst the Lower Middle-Income Economy Group  (Source: World Intellectual Property Organization)

A Robust Financial Sector

India has a robust, diversified and well regulated financial system which has allowed it to weather the global financial crisis without any major difficulties and present an image of quality, resilience and transparency. India’s banking sector is strong, with top quality balance sheets, high levels of competition (there are around 80 banks in India) and strong corporate governance.