NRI Moolah Adds Zing To India’s Growth Article

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NRI Moolah Adds Zing to India’s Growth

If Indian economy is on the upswing, non-resident Indians (NRIs), too, are not lagging behind. Steel baron Lakshmi Mittal is the world’s fifth richest man according to Forbes Magazine while new PepsiCo chief executive Indra Nooyi has been designated as the world’s fourth most powerful women.

Author: Amitabh Kumar

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If Indian economy is on the upswing, non-resident Indians (NRIs), too, are not lagging behind.

Feel good factor -

NRI news is brimming with the feel-good factor. Steel baron Lakshmi Mittal is the world’s fifth richest man according to Forbes Magazine while new PepsiCo chief executive Indra Nooyi has been designated as the world’s fourth most powerful women.

In Britain, NRI entrepreneurs Moni Varma, founder of the Veetee brand basmati rice, and Rami Ranger, founder-chairman of Sun Oil Ltd, won the Asian of the year and Asian Leadership in Europe Awards for 2006 respectively. Tarique Ghaffur, CEE, Assistant Commissioner, the highest-ranking NRI police officer in the Metropolitan Police Service, bagged the Asian Leadership in Diversity Award.

NRI children, too have done their bit to pep up NRI news. Latest official statistics have revealed that British Indian school children are racing ahead of their white counterparts in national tests that measure the three R’s. This has been the case in the US, too, where four Indian-Americans are among 32 students selected for the prestigious Rhodes scholarship for 2007.

At the same time, the attachment NRIs have for their motherland has led to NRI investment playing a crucial role in adding zing to the Indian economy.

According to a study by investment bankers, J.P. Morgan, India is the largest recipient of remittances by overseas workers, estimated at $21 billion -- up by almost 150% since 1995. The study also revealed that stock of deposits by NRIs amounts to $32 billion or 23% of foreign exchange reserves. Portfolio and real estate investment has been largely concentrated in the IT space.

The RBI, move to give higher interest rate on NRI deposits with Indian Banks has accelerated inflow of NRI funds into the banking sector.

NRI property investment is also looking up with an estimated 25 million NRIs scouting the country for potential real estate investment opportunities in a bid to maintain links with the land of their birth. So deep is the bonding that many NRIs still hang on to their ancestral property in their native villages. The government has also liberalized NRI laws to ease restrictions on NRI investment in property.

No Restriction -

There is virtually no restriction or approval required for an NRI to invest in Indian property from funds received through normal banking channels. The recurring rental income earned on letting out of property is also freely repatriable

In a recent notification, the RBI has also done away with the 10-year lock-in period for remittance from sale proceeds of immovable property. Foreign direct investment (FDI) under automatic route in real estate development has also boosted the confidence of overseas Indians to forge strategic alliances with global realty giants to test select markets across the country.

NRI investment is thus fuelling the growth of the Indian real estate at 30 percent every year and considering the immense potential, NRIs are likely to pump in more money.

About Author

Amitabh Kumar, a writer by profession has been part of content research team of magazines, journal dealing with NRI, non resident Indian news, stories, and issues. Presently he is content writer in website - http://www.nrirealtynews.com emphasizing on NRI News, property investment scenario for non resident Indians/ PIOs in India

Article Source: http://www.1888articles.com/author-amitabh-kumar-1406.html

NRI Moolah Adds Zing to India’s Growth