UAE-based non-resident Indians (NRIs) are expected to increase their investment inflows to India post the country’s general elections, a survey has found.
According to Standard Life, two-thirds of UAE NRIs believed the new government will create a better economic environment and make it investor friendly for retirement planning.
The majority of respondents also expected the new leadership to bring about positive regulatory developments that will lead to more foreign direct investments, financial services reforms, better infrastructure and greater economic growth.
“It is interesting to note that the NRI community looks to increase their investments in India after this period of perceived pre-election uncertainty,” said Chris Divito, CEO, Standard Life International Limited (DIFC Branch)
“Such situations are not uncommon in other markets where capital flows can sometimes reduce as investors wait for greater clarity on how any policy changes will affect the plans individuals make for how they will save and invest over the longer term and any changes to tax or remittance.”
The survey also revealed that UAE-based NRI investments in their home country are spread across a wide range of asset classes.
Around 45 per cent of the respondents said that they have invested in saving schemes while 43 per cent chose real estate investments.
Mutual funds, retirement plans and government backed infrastructure funds were other major recipients of NRI investments, the survey found.
Some of the respondents also indicated investment allocation towards gold, education and personal business.
“With significant economic clout, the UAE’s sizeable Indian community can be seen as a natural source for inward investments into India as most make investments and plan for retirement in their home country,” said Divito.
“Like most expatriates, NRIs are seen to be committed towards building wealth and securing their financial future.”
A recent survey by Friends Provident International found that the majority of NRIs in the UAE send money home despite risks of currency fluctuations.
However, media reports have indicated that the Indian rupee could soar if the Bhartiya Janata Party (BJP) prime ministerial candidate Narendra Modi comes to power in India.
India, which is on the cusp of choosing its next government, opened its polling booths today for its general election. The voting in the world’s largest democracy will conclude on May 12 with votes counted on May 16.