Investing in India, when living abroad, has always been the safe route to ensure good financial gains and securing future-return plans to the country. The Indian government too has played a responsible role in addressing the financial investment needs of its cash-rich, non-resident diaspora. Adopting a multi-level approach, the government has tried to ensure holistic investment opportunities for the wide-spectrum of foreign investor profiles – ‘gilt’ financial instruments, tax-saving instruments, business investment opportunities in multiple sectors, FDIs and more. In the new decade, the government has shown a renewed commitment to encourage an entrepreneurial and ‘business-building’ capacity within the country and is encouraging NRI to invest in these ventures. Several missions and intentions are being put-in-place to build the right eco-system to nurture entrepreneurial ventures, joint-ventures, innovations and such other activities.
The sectors that the government is looking for higher investments are currently in the Education, Energy and Environment, Healthcare, ICT (Information & Communication technology) and Infrastructure.
Policy intentions of the government is to build on the current profile of the country as a niche services-provider and become an end-to-end business destination globally.
To know more on diverse industry opportunities ask our experts.
Under stress from the global economic downturn, India’s GDP growth rate has slowed down to 5.6% in 2013 in comparison to the 8% and above rate of growth it has posted over the past 10 years. In spite of this slow down, India is arguably the second fastest growing economy in the world and offers lucrative business opportunities for NRI’s intending to enter its markets.
Know more about the prevailing economic and policy formulations to forge a successful business investment partnership or own a business with our experts.
The weakening value of the Indian rupee against the US dollar and other major currencies has led to India based assets and businesses having very attractive valuations in comparison to recent past. The dollar to rupee chasm has led to increase in the cost of raising funds in India. Indian business houses are positive on foreign collaboration as an alternate source to fund investment to weather the storm.
NRI investors would be at an advantage while negotiating a partnership or investment option in the prevailing scenario.
Real estate and housing projects are experiencing a softening of demand due to costlier loans which NRIs can benefit from. The emerging middle class of India is estimated to be around 300 million and growing. This huge market is driving demand for goods and services which offer an NRI business house an opportunity to make money. Click here to consult an expert on current investment options.
Find out more about incubating your business
The government offers extensive support to help NRIs find the right platform to address their business interests and has constituted business incubators just for this purpose.
What you need to know before you invest in India
As a non-resident Indian, looking to invest in India for the first time or are exploring newer opportunities, it is recommended that you begin a fresh phase of information gathering and knowledge building in the current Indian investment scenario. In fact, the government currently provides for investors an Interesting Investment Toolkit, which every investor should review.
Confidence in the Taxation system in India is Key to your investment success
When investing or engaging in business in India, you have to be confident of the tax system and where you can gain maximum benefit within the system.
Income tax for corporates
There are different categories of Income Tax for corporations in India and variable rates. These tax rates are high for sectors such as petroleum and natural gas. The tax rates (calculated on the profits earned) are about 5-percent lower for domestic or India-based countries over foreign-based companies.
Do note that companies incorporated in India always fall under the category of Domestic Company (even if it is fully funded by foreign investors/investments).
Besides, India has a double-taxation treaty with most countries where Indian communities flourish and you should take advantage of these tax benefits to achieve high investment goals.
Why you need to explore the exports category
Exports are a high-focus category for the government and it already offers several pro-Export facilities and policies to nurture the sector.
There are several categories of export zones created across the country and most states such as Karnataka offer exclusive export zones for software and Information Technology businesses. There are multiple incentives available for a variety of sectors by both state governments and the Government of India. These Include: tax holidays for 5 to 8 years, no taxes on exports even after the tax-holiday period and a fast-track single-window clearance for proposals related to Export processing zones. Our experts can provide real-time answers and consultation.
Technology Transfer: A huge growth potential
With Indian Government keen on building India’s entrepreneurial climate, it strongly encourages the transfer of technology from overseas with high one-time payments of Rs.1 Crore with automatic approval. There are different royalty taxes for domestic sales and exports and you can find out more on current policies with our experts here.
The government has from time to time revised its policies to meet current market needs so as to provide maximum leverage for foreign investors. Indians living abroad should use the country’s pro-investor policies. The onus remains on investors to first gain deep insight into the investment opportunities that now abound in India. The government’s role as a facilitator should be leveraged and all policies available should be exploited for maximum gain. Experts in every category from vertical-focus individuals to entire companies who have incubated business all await your interest.
A well-structured investment strategy and prudence in seeking expert advice to take advantage of the pro-non-resident-investor policies is waiting for the early adopters!
Who we are and What we Would Do For You:
Overseas Indian Facilitation Centre (OIFC) has been formed by the Ministry of Overseas Indian Affairs and Confederation of Indian Industry (CII) to address all NRI needs, provide smooth NRI services and is vested with the power of solving all NRI issues and problems. When it comes to investing in your home country, we at OIFC work on the triple pillar model of Informing – Consulting – Undertaking Services where we:
- Informyou in detail about all your investment questions – investment avenues, rules, procedures, formalities, etc
- Consultyou on the best avenues of investment, choose the most suitable modes and schemes, select sectors and businesses based on your business appetite, provide suggestions on investment plans already made by you and custom consult you on the basis of exactly what is suitable for you against your risk appetite and investment needs.
- Undertakeall formal and procedural aspects of your investment as prescribed in the various relevant laws, regulations and compliance for a smooth and hassle free investment experience.
Given above were the basic rules and procedures for NRI / PIO / OCB’s to invest in India.Ask the Experts at any point in time in order to directly contact our expert team of financial and tax advisors who would answer all your sector / company / location specific queries, provide you with sound financial planning and guidance for your particular investment needs and help you in doing all your investment formalities and paperwork for a smooth and rewarding investment experience in India.
Advise for contacting VidyaSunil & Associates:
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