First Click For NRI Investors

When an NRI wants to invest in India, what is his first step? Look for opportunities in India through different government bodies promised as 'a one-stop shop'. As if all the existing bodies to attract investment were not enough, the ministry for overseas Indians launched a new one last week - the Overseas Indian Facilitation Centre (OIFC).

Exploring on the Net, the NRI will come up with many different sites of the Indian government crying for foreign investment in India, especially from NRIs. Frustrated by India's red tape, NRIs want 'a single window' to handle all their queries and hold their hand until they get the approvals.NRIs have been promised and provided 'a single window' to invest in India time and again.

Much before the Internet and since the days of forms that were filled up by hand, the one stop point of contact for NRI investors has always existed in one form or the other.All these government-run facilities, as part of different ministries, remained overburdened with red tape and bogged by infinite delays. Over time, they morphed into new ones promising to be better - and faster - than before.

This has happened at both the central and state government levels. Every new government that takes power in New Delhi or in states wants to boost investment and so investment promotion with foreign tours is the first priority.Just search the web, and an NRI will find dozens of groups all out to assist him to invest in India.

The Indian Investment Centre, a government body with more than three decades of rich experience in investment promotion, is the first contact point and is the single window agency for authentic information or any assistance that may be required for investments, technical collaborations and joint ventures.All its services are free of charge, claims its home page. Of course, it has a special section for NRIs who are offered 'escort services' that include match making, arranging meetings and forwarding applications.

The ministry of commerce and industry is responsible for foreign direct investment (FDI) in India and has a unit to promote investment. The Foreign Investment Promotion Board under the finance ministry approves the investments. The approved projects are listed regularly.Then most state governments have an investment promotion centre as a separate body or a part of one of its ministries. These can also be accessed on the Internet. So what is special about the latest body to tempt NRIs to sink their money in India?

Private sector partnership!This can perhaps be expected to be more efficient as it has the Confederation of Indian Industry (CII) in partnership with the ministry of overseas Indians and is meant for NRIs and not large businesses.The CII organized the Pravasi Bharatiya Divas this year for NRIs and the event showed some improvement in achieving its aims. One of the demands made by NRIs was the creation of a centre where their abilities, qualifications and experience could be harnessed for India's progress instead of merely attracting their funds.Within five months, this demand has been answered with OIFC.

Its website, www.oifc.in, has almost the same information as the other investment promotion sites like India's economic progress. But the section on 'Opportunities in India' is a misnomer. As one goes to it to get a list of potential investment projects, one finds snippets of interesting economic information like 'India has more billionaires than China'! Surely, CII can do much better than this!The centre, through its website and offices, will provide reliable data on investment opportunities free of charge and assist in getting individual projects cleared as a paid value added service.

If the investment opportunities are free, it is hoped that these are listed on its site soon since CII should have a database of these projects both state-wise and sector-wise.The centre will provide 'authentic and real time information', promised Minister for Overseas Indian Affairs Vayalar Ravi. This will include consular and financial services and related advice.

The centre will screen the opportunities available in the country before listing these for NRIs so that they do not fall prey to "fly-by-night operators" and cheats, said Ravi. Thankfully, the centre will be managed by CII and will operate as a non-profit trust.In June, CII is holding a meeting with about 100 NRIs in the US to inform them about this centre in partnership with industry.

India hopes to attract $32 billion investment this year.NRIs remitted $23 billion last year mostly for their family members. Will they invest more after their first click at this new site? Only time will tell.

NRI Remittances Keep CAD Within Limits

The Reserve Bank has discarded the fears that India's current account deficit (CAD) would contribute to global imbalances, saying it is presently 1.7 percent despite a trade deficit of close to seven percent due to remittances from Indians working abroad.

Remittances provide an in-built cushion to balance of payments and help keep the cad within sustainable limits, RBI Governor Y V Reddy said, adding in this sense, the Indian economy has not contributed to the current global imbalances.

Addressing a gathering at the bank of Japan recently, he said: "the level of foreign exchange reserves is extremely modest compared to that of Japan, our reserves exceed each - a full years imports as well as the entire external debt."

On further reforms, Reddy said deregulation in the financial sector should be in tune with progress in the real and fiscal sectors.

"As we progress further in the reform process, the main focus would be to ensure that the pace of further deregulation and liberalisation remains consistent with the progress of reform in the real and fiscal sectors," he said. Reddy emphasised the need for proper implementation of the reforms in the banking sector and said the implementation should be in tune with national and global developments".

"In practice, within the given legal framework, priorities have to be appropriately set ensuring implementation of intended reforms in banking sector in tune with the evolving domestic and external developments," he said.

Remit2India to offer NRE transfers

World’s number one independent online money transfer portal for NRIs recently unveiled its exciting NRE promotional campaign. The promotion promises premium exchange rates to NRIs allowing them to earn up to Rs.4500 over the standard rates for transferring money into their NRE accounts.

NRE(Non-Resident External) account, is a bank account, which can be opened by any person of Indian origin or nationality, currently settled abroad. These accounts can be maintained in the form of savings, current or term deposit accounts with any authorized banks in India. An NRI gets the opportunity to enjoy the multiple benefits of higher interest rates, tax- free principal and interest amount and also full reparability of funds involved.

Furthermore, the NRI can use his NRE account to invest into the various investment vehicles including mutual funds, property, insurance, etc. as tools for wealth creation.

The NRE money transfers promotion being latest on the platter is designed and framed to steal the show by offering best possible exchange rates in the market exclusively for Remit2India customers. Remit2India service is available in 32 countries and 9 currencies across the globe for inbound remittances to India through multiple money transfer options available on the website.

Source:indiatimes