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If you have a <keyword id="19930665" type="General" weightage="100" keywordseo="PPF" source="keywords">PPF</keyword> account, you might want to pay attention to this! Starting October 1st, 2024, your PPF account is set to undergo massive changes, thanks to the new regulations, which were notified by the government in August this year, taking effect. If you don't know about them, here's a ready reckoner for you to get up to speed. 1. If you have opened a PPF account in your child's name i.e. a minor (who's under 18 years of age), their account would earn interest equivalent to a POSA (<keyword id="20076819" type="General" weightage="20" keywordseo="post-office-savings-account" source="keywords">Post Office Savings Account</keyword>), which currently stands at 4% p.a. Once your child turns 18 and attains majority, the standard PPF <keyword id="20071327" type="General" weightage="20" keywordseo="interest-rate" source="keywords">interest rate</keyword>, which is presently at 7.1%, will kick in. Remember that in a post office savings account, no interest is credited for a particular month, if the balance in this account falls below Rs 500, between the tenth and last day of the month. The maturity period for all such accounts will be calculated from the day the child turns 18 i.e. attains majority. Normally, the general maturity period of a PPF account is 15 years, with the possibility of extending it multiple times, but only in blocks of 5 years. 2. Have multiple PPF accounts? Well, you will not be earning any interest on any of your other PPF accounts, except for your primary one. As it is, PPF rules mandate that an individual can only have 1 PPF account. Inadvertently, many people end up opening 2 PPF accounts, sometimes with different banks, or one with a bank and post office each. Also, note that if you have opened a second PPF account on or after December 12, 2019, you are not eligible for merger of both your PPF accounts. In this case, your second account would be closed, without bearing you any interest. But if you have opened a second PPF account before this date, you can request for merger. However, in case you have not requested for such a merger, only your primary PPF account will continue earning interest at the rate of 7.1% p.a. While you will be able to transfer and send funds across from your second account, interest will only accrue on your primary PPF account, so better regularize your PPF account in the next 4 days with the post office or agency bank, lest you lose out on interest income. In case the balance in your primary PPF account is below the maximum annual investment limit of Rs 1,50,000, any balances you have in your second account will be added to the same, in order to calculate interest. And thereafter, any remaining balances in your second PPF account will be rendered ineligible for further interest. Lets understand this with an example. Suppose you hold 2 PPF accounts-A and B. The balance in account A is Rs 1,00,000, and that of B is Rs 70,000. In this case, you will only earn interest on Rs 50,000 from account B, while the remaining Rs 20,000 will not be considered while calculating interest. If the primary account stays below the applicable investment limit each year, the balance in the second account will be added to it. The primary account will continue to earn the prevailing scheme rate of interest after the merger. The second account's i.e. B excess balance will be returned without interest. 3. If you are an NRI who currently holds an active PPF account, where your residency status in Form H, which is needed to extend the tenure of your PPF account by 5 years was not asked for, your account will continue to earn interest at the same rate as a POSA (4%). Starting October 1st, such accounts will accrue no interest at all. Notably, while NRIs cannot open new PPF accounts, they can continue investing in their existing PPF account, which they had opened whilst they were still Indian resident. But once their account matures i.e. 15 years are over, they will not be able to extend their account's tenure.

Attention! Here's what's changing with your PPF accounts starting 1st October, 2024

<ul><li>Gated communities are a hot favourite amongst not only NRIs but affluent Indian residents as well.</li><li>Chennai, <keyword id="6354552" type="General" weightage="40" keywordseo="hyderabad" source="Orion">Hyderabad</keyword>, and Mumbai are seeing the maximum <keyword id="11904949" type="General" weightage="100" keywordseo="nri" source="Orion">NRI</keyword> demand. NRIs are also showing notable interest in senior living real estate projects</li></ul> The non-resident Indians, better known as NRIs, might be having a Swades moment. No, they are not returning to their homeland but have been noticed as buying property in the country with gusto. In an interview to Business Insider, Saurabh Garg, Co-founder and Chief Business Officer at NoBroker said, “We have witnessed a 35% growth year-on-year in the investment of NRIs in Indian residential real estate. This burgeoning trend is especially evident in their preference for gated communities, which offer a host of amenities.” Gated communities are a hot favourite amongst not only NRIs but the affluent Indian residents as well. Just a month back, a Hyderabad-based construction firm launched a Rs 3,000 crore <keyword id="1775779" type="General" weightage="30" keywordseo="gated-community" source="Orion">gated community</keyword> project claiming that it is the biggest in the city which has steadily seen a rise in rentals in the past few years. Adds Garg, “These communities provide not only enhanced security but a host of modern lifestyle resources, all of which contribute to an elevated lifestyle and high returns on investment (ROI) should they decide to rent out or sell later.” The logic behind the rise in <keyword id="541044" type="General" weightage="80" keywordseo="nri-investment" source="Orion">NRI investment</keyword> The increased investment in Indian real estate by NRIs can be attributed to the ease of investment, owing to technological changes, especially as things are now online. The increased demand from NRIs is especially from the gulf countries, followed by Singapore, the United States, and Australia, says the NoBroker research. Chennai, Hyderabad, and Mumbai have seen maximum demand, but no surprises there. Parallel to this trend, NRIs are also showing notable interest in senior living real estate projects for their parents or grandparents. These properties usually have healthcare facilities or partnerships with nearby healthcare providers. Thus, their elders can have easy access to medical assistance within the comfort of their homes. “A substantial 65% (of the interested NRIs) are opting to purchase properties for personal use, either for themselves or their parents,” Garg adds. Other interesting trends The NoBroker half-yearly report points to some changing patterns in the Indian real estate market, especially when renting is concerned. 3BHK units in greater demand: Potential buyers from Bangalore, Chennai and Delhi-NCR prefer 3BHK units over the earlier favourite 2BHKs. The primary reason behind this is the hybrid work culture as there is a need for a larger space to work as well as live. Further Investments: For the first time in many years, property owners are getting the “asking price” for their properties. The report says that 40% of landlords are considering investing in a new property. Quick renting turnaround: On average gated society properties get rented out 30% faster than non-gated society properties, says the report. 52% of the surveyed in Delhi mentioned that their properties got rented out within a fortnight. This was 46% in Mumbai.

Indian real estate sees 35% rise in demand from NRI customers

Underlining the contribution of non-resident Indians, Union Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> on Tuesday said <keyword id="6369957" type="General" weightage="20" keywordseo="remittances" source="Orion">remittances</keyword> sent to the country by overseas Indians were about USD 100 billion for the year 2022, an increase of 12 per cent in one year. Speaking at a session during the <keyword id="70478" type="General" weightage="20" keywordseo="Pravasi-Bharatiya-Divas" source="Orion">Pravasi Bharatiya Divas</keyword> (PBD) convention in Madhya Pradesh's Indore city, she described NRIs as the "real ambassadors of India" and appealed to them to use made in India products and services as far as possible so that the country's individual brand can be promoted across the globe. Sitharaman also said that after the "China plus one" policy, the world is now talking about the "European Union (EU) plus one" policy. The government is strongly presenting India to multinational companies as a country where they can set up their factories apart from China and the EU, she said. Sitharaman said the <keyword id="6402673" type="General" weightage="20" keywordseo="Indian-diaspora" source="Orion">Indian diaspora</keyword> should also partner with small and big businessmen of the country so that the entrepreneurial skills of NRIs can be harnessed in the next 25 years during the 'Amrit Kaal' of independence. "I recognise that remittances, which come from abroad by Indians who migrated, are about 100 billion US dollars for the year 2022. This is one of the highest remittances which is coming," the finance minister said. This has gone up by 12 per cent if compared to 2021, she said. "Within a year which was post-pandemic, people thought Indian workers will not go back abroad again, they have not only gone back but more have gone for very useful employment and the remittance numbers have gone up by 12 pc within one year," she said. Citing the dominance of Indian professionals in information technology, digital technology, automobiles, semiconductor designing, pharmaceutical manufacturing and other fields, she said the country is becoming a global hub of knowledge and progress. "In the Amrit Kaal of independence, an aspirational India will focus on four "I" which include <keyword id="17408" type="General" weightage="20" keywordseo="infrastructure" source="Orion">infrastructure</keyword>, <keyword id="6355120" type="General" weightage="20" keywordseo="investment" source="Orion">investment</keyword>, innovation and inclusion," she said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-gains-57-paise-to-close-at-81-78-against-us-dollar/articleshow/96884168.cms">Rupee gains 57 paise to close at 81.78 against US dollar</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tcs-tata-motors-paytm-among-stocks-in-focus-on-tuesday/articleshow/96870156.cms">Sensex sheds 632 points, Nifty50 falls 187 points as PSU bank, financial services and IT stocks drag</a>

Remittances from overseas Indians increased by 12% $100 billion in 2022: Sitharaman

<ul><li>Despite their physical presence abroad, NRIs maintain tax obligations on their Indian-sourced income. </li><li>The capital gains tax provisions for NRIs are similar to those for resident individuals, except for the applicability of TDS provisions. </li><li>It is important for NRIs to carefully consider their tax liabilities in both India and the country where they are a resident. </li></ul>You are a non resident Indian (NRI) if you live abroad. More specifically, you are classified as "non-resident" of India for a specific financial year as per the Income Tax Act. Despite their physical presence abroad, NRIs maintain tax obligations on their Indian-sourced income. This includes income sources such as salary received for services provided in India, interest earned from fixed deposits or savings bank accounts in India, as well as any capital gains arising from the sale of assets located in India. “NRIs are not taxed on their foreign income, which is not received in India or deemed to accrue or arise in India. However, they may be subject to tax in the country where the income is earned,” says Archit Gupta, CEO, Clear, a fintech company. <cmsannotation type="cmsannotation" annotationid="How income in India is taxed for NRIs" comment="subhead" text="How income in India is taxed for NRIs">How income in India is taxed for NRIs</cmsannotation> Let us take a look at how income in India is taxed for NRIs. <cmsannotation type="cmsannotation" annotationid="Income from salary" comment="subhead" text="Income from salary">Income from salary</cmsannotation> NRIs are subject to income tax in India on their salary if the services are rendered in India. “The income is taxed according to the income tax slabs applicable to residents,” says Akhil Chandna, Partner, Grant Thornton Bharat, a professional services firm. <cmsannotation type="cmsannotation" annotationid="Income from business and profession" comment="subhead" text="Income from business and profession">Income from business and profession</cmsannotation> Income earned by NRIs who have business connections in India is liable to be taxed in the country. The taxation of this income follows the same slab rates that are applicable to residents, and it is calculated based on the total income earned within India. <cmsannotation type="cmsannotation" annotationid="Rental income" comment="subhead" text="Rental income">Rental income</cmsannotation> There are no distinct rules for the taxation of house property in India based on residency status. The taxation rules for rental income from properties situated in India are the same for both residents and non-residents (NRIs). The rental income is taxable in the hands of the property owner, regardless of whether they are an NRI or a resident Indian. <cmsannotation type="cmsannotation" annotationid="Income from other sources" comment="subhead" text="Income from other sources">Income from other sources</cmsannotation> "Other Sources" income typically includes interest income from fixed deposits and savings bank accounts held in India, dividend income, etc. “Interest earned on Non-Residential External (NRE) and Foreign Currency Non-Resident Account (FCNR) accounts is fully exempt from tax. However, interest on non-resident ordinary (NRO) accounts is fully taxable,” says Chandna. He adds that for NRIs, income from "Other Sources" is subject to slab rates applicable to them. However, in many cases, income paid to an NRI is subject to TDS at a flat rate of 30% plus the applicable surcharge and health and education cess. <cmsannotation type="cmsannotation" annotationid="Taxation on investment gains" comment="subhead" text="Taxation on investment gains">Taxation on investment gains</cmsannotation> The capital gains tax provisions for NRIs are similar to those for resident individuals, except for the applicability of TDS provisions. The taxability of capital gains depends on the holding period and the type of investments sold. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Type of Shares </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Holding Period </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rate of Tax </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="2" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Listed shares </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 12 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 12 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% on gain in excess of INR 1,00,000 </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="4" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unlisted Shares/ Immovable Property </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 24 months </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Slab Rates </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 24 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% (with indexation) </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="4" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Debt Funds and Other Capital Assets </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 36 months </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 36 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% (with indexation) </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Grant Thornton <cmsannotation type="cmsannotation" annotationid="Taxation on money remitted to India" comment="subhead" text="Taxation on money remitted to India">Taxation on money remitted to India</cmsannotation> Since the money being remitted is from the NRIs income in a foreign country, it may be subject to income tax in that country. “Hence, in most cases, the NRI will not have to pay income tax on the remittance in India as it is already taxed in the foreign country. Further, if the money is being remitted for personal use by the NRI's family in India, such as for their living expenses or education, there is no tax liability,” says Chandna. <cmsannotation type="cmsannotation" annotationid="How NRIs can reduce their tax liability" comment="subhead" text="How NRIs can reduce their tax liability">How NRIs can reduce their tax liability</cmsannotation> NRIs can avail tax deductions under the Indian Income Tax Act, including deductions under Section 80C for investments in specified financial instruments, Section 80D for health insurance premiums, Section 80G for charitable donations, and Section 24 for home loan interest. “NRIs can minimise capital gain tax by investing in specified assets, such as residential properties and specific bonds, within a stipulated time period,’ says Chandna. <cmsannotation type="cmsannotation" annotationid="What to do if your PAN is inoperative" comment="subhead" text="What to do if your PAN is inoperative">What to do if your PAN is inoperative</cmsannotation> An NRI is not required to obtain an Aadhaar Card in India, and hence they are not required to link their PAN and Aadhaar. However, it is likely that some NRIs will find their PANs inoperative after June 30. “This is because the residential status of the individuals may not be updated in the records of the Income Tax (IT) Department as "Non-Residents". The IT Department has clarified that NRIs whose PAN has become inoperative shall reach out to their jurisdictional AOs along with supporting documents (such as a passport copy) to prove that they are NRs in India,” says Chandna. “It is important for NRIs to carefully consider their tax liabilities in both India and the country where they are resident, as double taxation may arise if they are taxed on the same income in both countries,” says Gupta. NRIs can claim relief from double taxation under the provisions of a tax treaty (DTAA) between India and the country where they are residents or through the use of the foreign tax credit provisions under Indian tax law.

Are you an NRI having income in India? Here’s how you will be taxed

The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) on Wednesday announced a series of measures to boost foreign exchange inflows. The central bank said that it has taken the steps in order to further diversify and expand the sources of <keyword id="6358355" type="General" weightage="20" keywordseo="forex" source="Orion">forex</keyword> funding so as to mitigate volatility and dampen global spillovers. India's foreign exchange reserves stood at $593.3 billion as on June 24, 2022, supplemented by a substantial stock of net forward assets, it said. The RBI has exempted incremental Foreign Currency Non-Resident Bank (FCNR-B) and Non-Resident (External) Rupee (NRE) deposit <keyword id="127684" type="General" weightage="20" keywordseo="Liabilities" source="Orion">liabilities</keyword> for computation of Net Demand and Time Liabilities (NDTL) for maintenance of cash reserve ratio (<keyword id="35038" type="General" weightage="20" keywordseo="crr" source="Orion">CRR</keyword>) and statutory liquidity ratio (<keyword id="46197" type="General" weightage="20" keywordseo="SLR" source="Orion">SLR</keyword>) by the banks. This will be effective from the reporting fortnight beginning July 30, 2022 with reference base date of July 1. "This relaxation will be available for deposits mobilised up to November 4, 2022. Transfers from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for the relaxation," the RBI said. It also decided to temporarily permit banks to raise fresh FCNR(B) and NRE deposits without reference to the extant regulations on interest rates, with effect from July 7, 2022. This relaxation will be available for the period up to October 31, 2022. The RBI also relaxed rules relating to foreign portfolio investment in debt by allowing all new issuances of government securities (G-Secs) of 7-year and 14-year tenors, including the current issuances of 7.10 per cent GS 2029 and 7.54 per cent GS 2036, under the Fully Accessible Route (FAR). It also decided that <keyword id="6362476" type="General" weightage="20" keywordseo="investments" source="Orion">investments</keyword> by FPIs in government securities and corporate debt made till October 31, 2022 will be exempted from the macroprudential short term limit - not more than 30 per cent of investments each in government securities and corporate bonds can have a residual maturity of less than one year. These investments will not be reckoned for the short term limit till maturity or sale of such investments. As part of the macroprudential framework under the medium term framework (MTF), foreign portfolio investors (FPI) can invest only in corporate debt instruments with a residual maturity of at least one year. The central bank has decided that FPIs will be provided with a limited window till October 31, 2022 during which they can invest in corporate money market instruments viz., commercial paper and non-convertible debentures with an original maturity of up to one year. The FPIs can continue to stay invested in these instruments till their maturity/sale. These investments will not be included for reckoning the short term limit for investments in corporate securities. According to the RBI, Authorised Dealer Category-1 (AD Cat-I) banks can utilise overseas foreign currency borrowings (OFCB) for lending in foreign currency to entities for a wider set of end-use purposes, subject to the negative list set out for external commercial borrowings (ECBs). The measure is expected to facilitate foreign currency borrowing by a larger set of borrowers who may find it difficult to directly access overseas markets. This dispensation for raising such borrowings is available till October 31, 2022. As regards the external commercial borrowings (ECB) the RBI has temporarily increased the limit under the automatic route from $750 million or its equivalent per financial year to $1.5 billion. The all-in cost ceiling under the ECB framework is also being raised by 100 basis points, subject to the borrower being of investment grade rating. The above dispensations are available up to December 31, 2022. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/monsoon-rain-wreaks-havoc-in-himachal-and-karnataka-orange-alert-in-gujarat/articleshow/92704563.cms">Monsoon rain wreaks havoc in Himachal and Karnataka, orange alert in Gujarat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/macbook-air-with-m2-chip-will-go-on-sale-from-july-15/articleshow/92704253.cms">Apple’s MacBook Air with M2 chip will go on sale from July 15, pre-orders starting July 8</a>

RBI tries to boost forex reserves by easing NRI deposit norms

<ul><li>Demand for bigger homes has seen a spurt in the <keyword id="9208211" type="General" weightage="20" keywordseo="post-covid" source="Orion">post-Covid</keyword> era. </li><li>In fact, 77% of the NRIs are looking to buy bigger homes, while 23% want 4 BHK homes. </li><li>Housing sector has seen a 15-20% increase in demand by <keyword id="11904949" type="General" weightage="50" keywordseo="nri" source="Orion">NRI</keyword> in the first nine months of 2022 compared to the corresponding period in 2021.</li></ul>Many non-resident Indians (NRIs) are looking to come back to their motherland keeping in mind the ongoing economic situation due to the Russia-Ukraine war and thus, are actively searching for housing properties in India. "Despite the worst of Covid-19 now in the past, NRIs have clearly not forgotten the uncertainties associated with living in a foreign country during a major pandemic. Securing homes in India became, and remains, a priority for Indians everywhere,” said <keyword id="266974" type="General" weightage="80" keywordseo="prashant-thakur" source="Orion">Prashant Thakur</keyword>, Sr. Director &amp; Head of Research, ANAROCK Group. In fact, 77% of the NRIs are looking to buy bigger homes, while 23% want 4 BHK homes and 54% want to buy 3 BHK properties, according to CII-ANAROCK Consumer Sentiment Survey. The survey got 55,000 responses from NRIs, out of which 7% were currently stationed in the US, Canada, Gulf, Europe, and various Asian countries. Demand for bigger homes has seen a spurt in the post-Covid era. “While schools and offices have reopened, the desire for extra living space remains undiminished. Many of the large IT companies and IT-driven startups now operate on a hybrid work model,” says the report. Notably, more NRIs prefer investing in Indian real estate over stocks, mutual funds, gold, and fixed deposits. Another reason why NRIs prefer bigger homes is the favourable exchange rate. The percentage of NRIs looking for 2 BHK properties has declined from 40% in 2019 (pre-Covid) to 22% in 2022 (post-Covid). "As per <keyword id="7746659" type="General" weightage="50" keywordseo="anarock-research" source="Orion">ANAROCK Research</keyword>, the Jan-Sep period of 2022 saw approx. 2.73 lakh homes sold in the top 7 cities," said Thakur. The real estate market has overall witnessed a gradual recovery after successive Covid-19 lockdowns. The demand further boosted during the festive season despite higher interest rates and biting inflation. <cmsannotation type="cmsannotation" annotationid="Bengaluru remains as one of the top choices" comment="subhead" text="Bengaluru remains as one of the top choices"><keyword id="6354321" type="General" weightage="80" keywordseo="bengaluru" source="Orion">Bengaluru</keyword> remains as one of the top choices</cmsannotation> Bengaluru has been one of the top three choices among NRIs to invest in the housing sector before, during and after the Covid pandemic. Other than Bengaluru, Hyderabad and NCR are the top choices for the NRIs this year. At least 60% of the respondents agreed to be looking for properties in Hyderabad, 20% were eyeing the NCR region and 18% were preferring Bengaluru. Last year, Bengaluru, Pune and Chennai were the top picks for most NRIs. While 63% of the respondents want premium properties priced between ₹90 lakhs to ₹1.5 crore, 59% NRIs preferred luxury properties priced between ₹1.5 - 2.5 crore. Overall investment in the Indian housing by NRIs has ballooned from 55% in the pre-Covid year (2019) to 71% this year. "On an average, NRIs account for 10-15% of homes sold in any given quarter,” Thakur added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/canada-facing-labour-shortage-what-does-it-mean-for-indian-immigrants/slidelist/95251236.cms">Canada facing labour shortage — what does it mean for Indian immigrants</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/reliance-capital-bidders-flag-off-multiple-legal-issues-involving-rs-20000-crore-liability/articleshow/95248934.cms">Reliance Capital bidders flag off multiple legal issues involving Rs 20,000 crore liability</a>

More NRIs are keen to buy bigger homes in the country, says report

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>'s external debt of $620.7 billion, as at end of March 2022, is sustainable and is being managed in a prudent manner, the <keyword id="144110" type="General" weightage="80" keywordseo="department-of-economic-affairs" source="Orion">Department of Economic Affairs</keyword>, under the Union Finance Ministry, said. In a recent report, the Department of Economic Affairs said the country's external debt continues to be sustainable and prudently managed. "As at end-March 2022, it stood at $620.7 billion, growing by 8.2 per cent over the level a year ago. External debt as a ratio to GDP (gross domestic product) was 19.9 per cent, while reserves to external debt ratio was 97.8 per cent," the report said. The sovereign debt at $130.7 billion rose higher by 17.1 per cent over its level a year ago, mainly because of additional allocation of special drawing rights (SDR) by the IMF during 2021-22. The non-sovereign debt, on the other hand, grew 6.1 per cent to $490 billion over the level as at end-March 2021. Experts had said that the external debt of $620.7 billion need not be a concern as $490 billion is non-government and the share of government is only $130.8 billion. Of the non-government debt, the share of non-financial corporations was about $250.2 billion. Further, the total debt of $620.7 billion as a percentage of gross domestic product (GDP) was 19.9 per cent and the debt service ratio was 5.2 per cent. Experts also said India cannot be compared with Sri Lanka that is in a severe economic crisis. The share of the central government in short term debt - maturing in a year's time- is only $7.7 billion out of the total $267 billion, experts had said. Commercial borrowings, <keyword id="11904949" type="General" weightage="80" keywordseo="nri" source="Orion">NRI</keyword> deposits, and short-term trade credit are the three biggest constituents of the non-sovereign debt, accounting for as much as 95.2 per cent. While NRI deposits declined by two per cent to $139 billion, commercial borrowings at $209.71 billion and short-term trade credit at $117.4 billion rose by 5.7 per cent and 20.5 per cent, respectively. According to the report, the debt vulnerability indicators continued to be benign. The debt service ratio fell significantly to 5.2 per cent during 2021-22 from 8.2 per cent during the previous year, reflecting buoyant current receipts and moderating external debt service payments. The debt service payment obligations arising out of the stock of external debt as at end of March 2022 are projected to trend downwards over the coming years. From a cross-country perspective, India's external debt is modest. In terms of various debt vulnerability indicators, India's sustainability was better than the Low-and Middle-Income Countries (LMICs) as a group and vis-a-vis many of them individually. According to the report, the US dollar continues to be the leading currency of denomination accounting for 53.2 per cent of the total as at end March 2022. Deposits in Non Resident (External) <keyword id="8182719" type="General" weightage="80" keywordseo="rupee-accounts" source="Orion">Rupee Accounts</keyword> (NR(E)RA), NRO accounts and <keyword id="725142" type="General" weightage="80" keywordseo="fpi" source="Orion">FPI</keyword> investments in Gsec and corporate bonds are among the components of India's external debt, denominated in Indian rupees. Indian rupee is the second leading currency of denomination with a lower share of 31.2 per cent of the total as at end-March 2022 than 33.3 per cent a year ago, reflecting erosion of outstanding FPI investments in G-Sec and corporate bonds ($50.1 billion from $51.4 billion as at end-March 2021) and balances under NRE accounts ($100.8 billion from $ 102.6 billion). Following the US dollar and the Indian rupee are the SDRs (6.6 per cent), the Japanese <keyword id="76265" type="General" weightage="80" keywordseo="yen" source="Orion">Yen</keyword> (5.4 per cent) and Euro (2.9 per cent). SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/delhi-liquor-shops-open-at-metro-station-premises/articleshow/93994229.cms">Delhi: Liquor shops open at Metro station premises</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/mistrys-body-to-undergo-autopsy-in-mumbai-pundoles-critical-but-stable/articleshow/93994156.cms">Mistry's body to undergo autopsy in Mumbai, Pundoles critical but stable</a>

India's external debt of $620bn is sustainable: Finance Ministry report

<ul><li>Gold has always acted as a safe haven during economic uncertainties. </li><li>Whether the inflation in the US is controlled or the US slips into a recession, the demand for gold is expected to remain robust going ahead. </li><li>Experts suggest that investors should invest 5-10% of their portfolios in gold. </li></ul>On Monday, gold breached levels of ₹60,000 for 10 gms. In the international markets too, it crossed the $2,000 mark per ounce. However, prices have edged lower today, as investors focus on the Federal Reserve’s meeting. It is expected that the Fed could slow down the monetary tightening process, given the crisis in the banking sector. “Gold prices have exploded in the last few days as it has got safe-haven bids amid uncertainty. This uncertainty has been raised by the upcoming Federal Open Market Committee (FOMC) decision on whether to pause or raise interest rates by 25bps. Secondly, and equally important, is the current banking crisis, which has now spread globally to include Switzerland's Credit Suisse. As FED has raised the interest rate by 450 bps in 2022, this is going to hamper US economic growth and is turning out to be positive for gold,” says Renisha Chainani, head-research of Augmont Gold For All, an integrated gold ecosystem encompassing refining to retailing. To understand the present scenario, we can look at some lessons from history. “In the past, whenever there has been an interest rate hike cycle, there are two common things that happen. Initially when the rate hike cycle starts, there is a significant correction in gold. However, we have always seen that towards the fag end of the interest rate cycle, when there is a discussion about slowing down of the rate hike and eventually stoppage of rate hikes, the prices of gold start rallying. The other thing is that of eight odd rate hikes that we have witnessed in the modern economic history, we have seen that seven of them have been followed by recession and that kind of fuels safe haven kind of demand for gold,” says Pritam Patnaik, head - commodities, HNI &amp; NRI Acquisitions, Axis Securities. He says that going ahead, one of the two things can happen, inflation may be controlled and that could further reduce the rate of hikes according to the playbook of the Fed. Alternatively, it may push the US into recession which would further fuel the haven demand for gold. “By the year-end I won’t be surprised if gold reaches the level of 70,000’ he adds. Factors that affect <keyword id="46002" type="General" weightage="20" keywordseo="gold-prices" source="Orion">gold prices</keyword>: “Gold is a unique asset class , it has cyclical and countercyclical drivers. When the economy is doing well and there is a large demand for gold, gold prices generally go up. However, when there is economic uncertainty, investors prefer gold over other asset classes and then prices of gold also go up,” says Ghazal Jain, Fund Manager, Alternative Investments, Quantum AMC. It is not guaranteed, but traditionally gold prices and interest rates have quite a strong negative correlation. Gold prices go down when interest rates go up and prices go up when interest rates go down. Rising interest rates makes bonds and other investments more attractive to investors and money flows out of gold into these investments, while lower interest makes these assets less appealing, which drives investors towards gold and hence prices go up. Also, because gold is denominated in dollars, gold prices have an inverse relationship with the Dollar Index; a stronger US dollar tends to drive gold prices lower, and vice versa. “Gold and the US dollar are interchangeable because they both serve as international reserves and hedging instruments. Gold demand falls when the US dollar rises,” says Chainani. Currently the US Dollar Index is at a one-month low. What investors should do: We have seen a parabolic rally in Gold as prices have run up 10% in the last 10 days from levels of ₹55,000 to ₹60,450. “Investors should not jump to enter buy positions for Fear Of Missing Out (FOMO), but should wait for prices to stabilize and then invest,” says Chainani. Agrees Patnaik, “When it comes to investors, there is a feeling of being left out. My sense is that it is never too late, because if you are talking about ₹65,000-₹70,000 levels, there is still a headroom available. I would put in a part of that investment right now and as and when there is a dip in the market, I will invest more. I would suggest that investors invest 5-10% of their portfolio in gold.” Gold remains a great hedge against inflation and can add a glitter to an investor’s portfolio.

Gold likely to reach ₹70,000 levels by year end

Non-resident Indians, who were <a href="http://www.businessinsider.in/NRI-Investments-In-Indias-Real-Estate-Market-To-Surge-By-35/articleshow/42378724.cms">once major property buyers</a> in India, are now keeping away from investing here, and the Indian state of Kerala seems to be the <a href="http://www.businessinsider.in/Want-to-invest-in-real-estate-Think-Kochi/articleshow/48996677.cms">worst affected</a>. 
 
Off lately, Kerala has seen more than 50% drop in sales to the NRI buyers, as per the global real estate consultant Coldwell Banker. Among other places affected by this NRI disinterest in Indian property market are Ahmedabad, Surat, Vadodara, Bengaluru, Mumbai, <a href="http://www.businessinsider.in/Pune-Hyderabad-Navi-Mumbai-and-Ahmedabad-among-10-affordable-property-markets-in-India/articleshow/50548470.cms">Pune, Hyderabad</a>, Gurugram and Noida, which have seen around 20% drop in the annual demand over past two years. 
 
Also read: <a href="http://www.businessinsider.in/Know-why-NRI-home-buyers-are-back-on-propertydevelopers-radar/articleshow/48096968.cms">Know why NRI home buyers are back on property developers’ radar</a> 
 
The slowdown in the Gulf region, which has significantly reduced NRIs' disposable income, can be cited as the reason behind this change in trend, while one can’t ignore the role played by a week rupee, which even though improves the buying capacity, makes the actual ROI lower for NRIs. 
 
Kerala's property market has seen major investments from Gulf countries, which have now slowed down due to job rationalisations and slower economic conditions in Western Asian countries. 
 
This has forced the Kerala-based Builders to make homes for the middle income group so that at least local buyers can be attracted. Earlier, they focused on making houses costing Rs 1 crore and more, to invest NRIs. 
 
Some experts believe that it’s also the poor quality of <a href="http://www.businessinsider.in/Here-are-dos-and-donts-for-NRIs-who-apply-for-home-loans/articleshow/50296601.cms">client servicing</a> and construction that has led to a lowered NRI interest in buying properties in the state. 
 
<a href="http://realestatetalk.com.au.s3.amazonaws.com/wp-content/uploads/2015/07/houses_prices_down_28_05.jpg">Image source</a>

Kerala’s property market crunch has nothing to do with India’s economic situation, but a worrying trend anyway

This year <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> players in India will have a reason to smile. Studies indicate that NRI property buyers’ investment is expected to surge by 35% against 18% in the last fiscal year. 
	 “NRIs feel confident about the new government of India and waiting for an investment-friendly market in various fields” said D S Rawat, secretary general of <keyword id="6355988" type="CITY" weightage="20" keywordseo="Assocham">ASSOCHAM</keyword> in a report. According to a survey conducted by the industry body, where 850 real estate developers were questioned, there has been a substantial increase in number of enquiries from NRIs. The survey was carried out in Delhi-NCR, Chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune, Dehradun and Chennai among others. 
	 Rawat attributed this rise to the revival of global economies. “People are more optimistic and looking for property to invest in. Both small and big developers are foc<keyword id="6354458" type="COUNTRY" weightage="20" keywordseo="US">us</keyword>ing the NRI base in the US, <keyword id="6354868" type="COUNTRY" weightage="20" keywordseo="UK">UK</keyword> and Asia Pacific Region this year. ” 
	 According to the findings of the survey, NRI property buyers have shown inclination towards high-end residential and commercial properties in the country. A large number of enquiries are coming from Indians residing primarily in the Middle East, the US, <keyword id="6356662" type="COUNTRY" weightage="20" keywordseo="Singapore">Singapore</keyword>, Australia, UK, Canada and South Africa. 
	 
	In terms of the most preferred city, Bangalore has topped the charts followed by Ahmedabad, Pune, Goa and Chennai. Surprisingly, Delhi is among the least preferred real estate markets. 
	 
	“Bangalore tops in terms of investment from Non Resident Indians (NRIs) who are considering settling down in India in coming years. The major factors that drive NRIs to invest in Bangalore’s property market is the booming IT sector. On the other hand, Ahmedabad has continued to be the most stable market in terms of demand and absorption of both residential and commercial spaces. NRI’s consider Ahemdabad as a safe place to invest in, with lenient government regulations regarding property investments by NRIs. While Pune takes the 3rd place with 30.5%, Chennai at 28% per cent assumes 4th position and Goa is at 5th position with 23%. While in Delhi, only 21% NRIs are interested in property purchase,” the study disclosed. 
	 
	In order to woo the cash-rich NRI clientele, real estate players have not only organised property shows and exhibitions, but have also expanded their existing distribution chains and entering into strategic partnerships to encourage investments in the Indian property market. 
	 
	 NRI Investments In India’s Real Estate Market To Surge By 35%NRI property buyers’ investment is expected to surge by 35% against 18% in the last fiscal year.“NRIs feel confident about the new government of India and waiting for an investment-friendly market in various fields” said D S Rawat, secretary general of ASSOCHAM in a report. 
	 
	According to a survey conducted by the industry body, where 850 real estate developers were questioned, there has been a substantial increase in number of enquiries from NRIs. The survey was carried out in Delhi-NCR, Chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune, Dehradun and Chennai among others.Rawat attributed this rise to the revival of global economies. “People are more optimistic and looking for property to invest in. Both small and big developers are focusing the NRI base in the US, UK and Asia Pacific Region this year. ” 
	 
	NRI property buyers have shown inclination towards high-end residential and commercial properties in the country. A large number of enquiries are coming from Indians residing primarily in the Middle East, the US, Singapore, Australia, UK, Canada and South Africa.Ahmedabad, Pune, Goa and Chennai. Surprisingly, Delhi is among the least preferred real estate markets.NRIs) who are considering settling down in India in coming years. The major factors that drive NRIs to invest in Bangalore’s property market is the booming IT sector. 
	 
	On the other hand, Ahmedabad has continued to be the most stable market in terms of demand and absorption of both residential and commercial spaces. NRI’s consider Ahemdabad as a safe place to invest in, with lenient government regulations regarding property investments by NRIs. While Pune takes the 3rd

NRI Investments In India’s Real Estate Market To Surge By 35%

A group of 69 non-resident Indian (NRI) investors have sued <keyword id="143240" type="COMPANY" weightage="20" keywordseo="ICICI-Venture">ICICI Venture</keyword>’s Dynamic India Fund III, India’s largest private equity firm, and <keyword id="6653" type="CITY" weightage="20" keywordseo="ICICI-bank">ICICI Bank</keyword> to the Supreme Court of Mauritius. They have alleged that the money they had invested in the firm did not yield the returns outlined initially. 
 
The investors have also alleged that the two entities had misguided them by not disclosing “pertinent information” about the fund’s performance and the risks. ICICI Bank has dismissed the charges as “baseless and malicious.” 
 
“A plaint with summons was lodged before the Supreme Court of Mauritius by a group of NRI and foreign investors against (DIF III), International Financial Services Ltd (IFS), ICICI Venture Funds Management Company Ltd (ICICI Venture), ICICI Bank and the Western India Trustee And Executor Co Ltd,” said Banymandhup Boolell Chambers, the legal firm handling the case. 
 
"Work on a township project in Chennai, in which the Fund invested, has not even commenced after 9 years due to serious infrastructure problems. Two or three projects are in dire financial liquidity problems. Only one project in Pune has been exited after eight years and that too considerably under- performed from projected growth,” the investors said. 
 
The group of investors has demanded a compensation of $103 million for a $4.7-million investment made in 2005 in Dynamic India Fund-III, which was floated by ICICI Venture and ICICI Bank. 
 
Refuting the allegation, an ICICI Venture spokesperson said: “The allegations levelled by a set of investors, constituting only 12% of the investors in the concerned funds, are totally baseless, not supported by facts and are malicious".

NRI Investors Sue ICICI

<a href="http://www.businessinsider.in/searchresult.cms?query=Prime+Minsiter+Narendra+Modi&amp;sortorder=effectivedate">Prime Minsiter Narendra Modi</a> has always addressed Indian <keyword id="57609" type="ORGANIZATION" weightage="20" keywordseo="Diaspora">Diaspora</keyword> during his foreign tours, appealing and encouraging them to invest in their homeland. Behind the powerful speeches, actions and plans is <keyword id="667859" type="PERSON" weightage="100" keywordseo="Vijay-Chauthaiwale">Vijay Chauthaiwale</keyword>, who plans how <keyword id="14666" type="ORGANIZATION" weightage="20" keywordseo="BJP">BJP</keyword>’s foreign policy should be. 
 
Chauthaiwale, 53, was chosen by <a href="http://www.businessinsider.in/searchresult.cms?query=BJP&amp;sortorder=effectivedate">BJP</a> President <a href="http://www.businessinsider.in/searchresult.cms?query=Amit+Shah+&amp;sortorder=effectivedate">Amit Shah </a>and since then, he has driven Modi’s efforts to reach roughly 28 million expatriates and people of Indian origin around the world, helping plan glamorous events at venues such as <a href="http://www.businessinsider.in/searchresult.cms?query=Wembley+Stadium&amp;sortorder=effectivedate">Wembley Stadium</a>. 
 
To lure foreign investments, Modi has been bettering relations with the NRIs. It also allows Modi to increase the profile of Indians in the U.S, United Arab Emirates and elsewhere, turning these large communities into politically potent constituencies that can push local politicians and businesses to seek closer economic ties with India. 
 
"This government sees diaspora as a part of the development story and we want them to be informal ambassadors for India in their own country, engaging themselves with local politicians and actors," Chauthaiwale told <a href="https://www.bloomberg.com/news/articles/2016-12-20/meet-the-man-leading-modi-s-outreach-to-india-s-huge-diaspora">Bloomberg </a>in an interview. 
 However, everyone isn’t convinced. Experts say Modi's compelling picth is yet to see results. “PM Modi’s reform efforts have yet to compel a significant number of non-resident Indians to invest or return,” <keyword id="1020377" type="UNKNOWN" weightage="20" keywordseo="Sreeram-Chaulia">Sreeram Chaulia</keyword>, dean of the Jindal School of International Affairs and author of a book on Modi's foreign policy, told Bloomberg. 
 
“Part of the challenge is that India's economy remains as unpredictable as ever: On Nov. 8, Modi plunged the country into social and economic uncertainty by suddenly invalidating 86 percent of currency in circulation, leading analysts to downgrade growth forecasts. NRIs still look at India with some skepticism, because ease of doing business in India has not improved that much," said Chaulia. 
 The Indian diaspora is a crucial part of India's economy. In 2015, the <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword> said the diaspora sent back $72.2 billion in remittances, more than India's bilateral trade with the U.S. and almost as much as the $74.9 billion trade relationship with China. 
 
The diaspora, including groups like the Overseas Friends of BJP, can also help Modi's attempt to change the Indian economy's reputation for corruption and red tape, Chauthaiwale said. 
 "Rebranding was necessary, because when Prime Minister Modi took charge, practically everyone had written off India because of the corruption scandals, nepotism and indecision. People are rediscovering the potential of India, especially the <keyword id="6357804" type="ORGANIZATION" weightage="20" keywordseo="NRI">NRI</keyword> community,” said Chauthaiwale, 
 In an era characterized by a backlash against immigration -- with the election of President-Elect <keyword id="6354484" type="PERSON" weightage="20" keywordseo="Donald-Trump">Donald Trump</keyword>, the Brexit vote and Modi's clash with British Prime Minister <keyword id="368666" type="PERSON" weightage="20" keywordseo="Theresa-May">Theresa May</keyword> over student visas -- India's global workforce is under threat. 
 
Modi is pushing for looser migration rules for India's mobile professionals and Chauthaiwale said the government has made it easier for non-resident Indians to return to India, invest and do philanthropy in their home villages. 
 
Outreach to diaspora groups is a key plank of Modi's foreign policy that "helps India get accepted as a rising power," said Chaulia. 
 
These wealthy communities are also a large source of political donations for the BJP, he added. 
 
"It's a big fundraising mechanism," Chaulia said. "They don't mention it. But it's there." 
 
As the BJP prepares for crucial state elections next year, the party won't end its global outreach, Chauthaiwale said, and will help to coordinate foreign visits for cabinet ministers with newly engaged diaspora groups. 
 
"They have a new sense of identity, and they are now also seeing themselves as a force to be reckoned with," he said.

Meet Vijay Chauthaiwale - the man leading PM Modi's campaign to woo Indians abroad

A slump in the consumer demand in the realty market has definitely hit the developers hard. But they can heave a sigh of relief. It seems our <keyword id="58225" type="ORGANIZATION" weightage="20" keywordseo="NRIs">NRIs</keyword> community has revived its interest in the property market back home for investment purposes. 
	 “For a protracted period, investments in India did not offer good returns, causing NRIs to choose to invest in the countries they migrated to - or anywhere else where the markets were attractive. However, with the resurgence of the Indian economy after the arrival of a stable government intent on boosting business in the country, things are changing. Today, the Indian realty market is once again a prime focus area for NRI investors,” said Ashwinder Raj Singh, CEO, Residential Services at <keyword id="484198" type="COMPANY" weightage="20" keywordseo="JLL-India">JLL India</keyword>. 
	 
	He added that while NRI property buyers have their preferences amongst Indian cities, a larger chunk of investment in the residential property is done in these two cities—Delhi and Mumbai. 
	 
	“Generally, the NRI community prefers to invest in their states of origin – primarily Kerala, Karnataka, Tamil Nadu, Maharashtra and Delhi NCR. However, since residential inventory has piled up in the two major cities of Delhi and Mumbai, investors are currently very well placed to find good bargains in these markets, as most developers there are offering discounts and attractive financial schemes,” Singh noted. 
	 According to industry experts, NRIs who are soon to retire should look at investing in India as the basic social <keyword id="17408" type="PERSON" weightage="20" keywordseo="infrastructure">infrastructure</keyword> in most of the larger Indian cities has been upgraded. 
	 
	However, the industry also suggested that NRIs must consult professionals with extensive research-driven background to ensure that they will get the best returns for their investment. “As a rule, NRI investors should be wary of projects by unknown developers who have no existing track record. Innumerable numbers of buyers are currently falling in trouble because they have plugged their funds in projects which do not have all the mandatory clearances and fall short of even the minimum standards of quality construction. Unless a NRI plans to visit India and personally evaluate projects, he or she should opt only for reputed developers,” he stated. 
	 
	Additionally, he said that NRIs should take care of other factors such as the credibility and brand visibility of a developer in the market, the location of the project in terms of social and civic infrastructure, the amenities and the timelines for possession in the case of under-construction projects. 
	 
	“NRI investors focused on benefiting from discounts can consider booking in projects which are in the pre-launch stage, as prices tend to be competitive. Again - while due diligence is important for end-users, it is even more important for investors who are considering projects in upcoming or peripheral locations of the primary cities. Professional real estate advisors should be consulted to establish for the legitimacy of such projects,” said Singh. 
	 
	It should be noted that in the last few years, Indian developers had miscalculated the demand in the market and how much buyers - including NRIs - are willing to spend on their first or second homes. This resulted in increased levels of supply overhang of larger-configuration apartments. However, selective correction in many such property markets is taking place and the prices of real estate projects is expected to come down substantially.

Know why NRI home buyers are back on property
developers’ radar

That UAE has a lot of super rich and super successful Indians is not a hidden fact, and in a bid to do something for their country while benefiting from the huge scopes of returns on investment, five such leading Indian-owned businesses in the UAE will be investing over $3.68 billion in infrastructure and industrial development initiatives in the state of Uttar Pradesh (UP). For this, an MoU has been signed during an investment forum held in Dubai. 
 <keyword id="6355031" type="PERSON" weightage="100" keywordseo="Akhilesh-Yadav">Akhilesh Yadav</keyword>, the Chief Minister of UP, had earlier launched what he called an ambitious programme to boost the all-round development of the state, which was to be done by attracting NRI investments from across the globe, with a special focus on the Middle East. 
 
The companies have pledged to invest in the upcoming manufacturing, utilities and healthcare initiatives in the state, and their names will be made public in the coming weeks. 
 
It was a few months back that the Abu Dhabi-based Lulu Group had announced its decision to invest Rs 1000 crore to set up a shopping mall, convention centre and five-star hotel in the state, which would also create more than 3,000 jobs once it is completed. 
 
<a href="http://d1pcxoetpnw26i.cloudfront.net/thequint/2015-12/3fe4934c-baab-4fc9-9cde-376bfc18290d/Akhilesh%20Yadav.jpg">Image source</a>

You Searched For "nri investment" and got 14 results

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