UAE a major draw as India's rich set to pump $20b overseas

Emirates emerges as top hub for Indian capital that is now more free to flow out

- BY JUSTIN VARGHESE

Wealthy Indians could channel as much as $20 billion annually into overseas markets under India's liberalised foreign investment rules, with the UAE emerging as a top destination, according to Amit Goenka, Chairman and Managing Director of Nisus Finance.

The Reserve Bank of India's revised framework for Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI) under the Foreign Exchange Management Act (FEMA) has eased restrictions and created fresh avenues for outbound capital. The rules allow Indian entities to invest abroad through the Automatic Route up to 400 per cent of their net worth without prior RBI approval, covering equity, loans, and guarantees.