India becomes top destination for foreign investments, NRIs focus on real estate

SEBI and RBI have also been formulating policies and guidelines to encourage Foreign Direct Investment

The Indian economy has the potential to grow 7.8 percent due to better agriculture production and a recovering rural economy amid global headwinds mainly due to the ongoing Russia-Ukraine war.

Led by Prime Minister Narendra Modi, India is rapidly emerging as a preferred destination for foreign investments, according to Business Standard. For the last eight years, gross foreign direct investment (FDI) has continuously increased in volume and set new records.

From USD82 billion in FY2021, FDI inflow has increased to USD83.6 billion in FY2022.

“Various initiatives/schemes have been launched by the government for promoting growth and attracting investment in India,” stated Som Prakash, Minister of State in the Ministry of Commerce and Industry. He also added that because of these initiatives, India jumped to 63rd place in World Bank’s Ease of Doing Business (EODB) ranking.

Furthermore, India’s real estate sector is also seeing a rise in investments. NRIs are driving their investment focus towards India as the Indian government has become more friendly to foreign investors. The Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI) have also been formulating policies and guidelines to encourage Foreign Direct Investment.

Compared to the earlier estimate of USD13.1 billion, NRIs have invested USD13.3 billion in Indian real estate in FY2021. The gradual return of NRIs to the real estate market over the past few months has boosted sales of luxury residences, reported The Times of India.

Bengaluru, Chennai, Delhi, Gurgaon, Mumbai, and Pune are among the top metro areas that NRIs prefer.

More: India’s housing market attracts more HNIs, Mumbai market to set a new sales record

As a result of growing inflation, supply chain disruptions, and geopolitical tensions, the World Bank has reduced India’s economic growth prediction for the current fiscal year to 7.5 percent.

The Indian economy expanded 8.7 percent in the latest fiscal year (2021-22) after contracting 6.6 percent the previous year, as reported by The Economic Times.

The Property Report editors wrote this article. For more information, email: [email protected].