NRI investments in India: Monetary gain and more

Any kind of investment in their motherland was and is an option that tugs at the heartstring of NRIs. A progressive outlook of Indian economy only consolidates the decision of NRIs to own a base for them back home.

Riding high on not only sentimental waves, NRIs have seen concrete reasons to part with a part of their income, that is, to invest in India. Lucrative investment options, high return schemes tailor-made to suit their needs and pro-active policies on their investments does not leave space for any apprehensions.

This is evident from the increase in FDI in the capital markets and bullish trends of the stock markets. FDI in India is projected to double itself by 2007-08. The investment options for NRIs include investments in real estate; one of the most lucrative options assuring very high returns. In the wake of the realty boom evident everywhere, NRIs are investing in Indian real estate to the fullest. The government allows 100 percent NRI investment in Indian real estate.

Another sector that is witnessing a surge is the stock market. NRIs are allowed a 100 per cent investment in equity shares of real estate companies, air taxi operations and others. Under schemes like Portfolio Investment Schemes, NRIs are making active investments in equities . FDI equity inflow during the first quarter is Rs 6, 538 crore. Among all NRI investments in India , not all are for monetary gain. A few of them are also evidence of their patriotism and the emotional duty that they feel towards their motherland.

A case in point refers to a USD 20 million donation by an NRI neurosurgeon working in USA. Dr Kumar Bahuleyan insists that building a specialty hospital, a health clinic and a spa in his homeland are his ways of doing something for his motherland even while staying abroad. There are many such similar cases when NRIs have made a mark in their motherland.