TAX BREAKS, REFORMS & RETURNS: NRIs BETTING BIG ON INDIA

GIFT City could be an attractive destination for efficient cross-border financial investments

- KRISHNA MAKHARIYA

India is cementing its reputation as a prime destination for global investors, with inflows into NRI deposit schemes surging to $7.8 billion between April and August-more than double the figure from a year ago. NRIs are increasingly drawn to opportunities ranging from equities and mutual funds (MFs) to real estate and GIFT City's tax-efficient investment avenues. The Indian market offers diverse avenues for portfolio diversification, including alternative investments such as portfolio management services (PMS) and alternate investment funds (AIFs).

Equity investments, for instance, have delivered an impressive average annual return of 15 % over the past five years, outperforming most major economies. MFs remain a popular choice, providing professional management, diversification and flexibility. Through the portfolio investment scheme (PIS), NRIs can seamlessly trade in Indian equities via NRE or NRO accounts on recognised stock exchanges. The real estate sector further strengthens the investment appeal, offering steady returns. Reforms like Real Estate Regulation Act (RERA) and Foreign Exchange Management Act (FEMA) have enhanced transparency and accessibility.