Investment opportunities for NRI'S in India

Investment opportunities for foreign nationals in India

The business sector in India is growing and expanding both in size and in terms of the level of investment. There has been a steady growth in the number of start-ups and SMEs (Small and Medium Enterprises). In the last five years, India's GDP has grown at an average of 8.5 percent.

According to the World Survey, India was ranked as the fourth best place in the world for entrepreneurs to start a new venture. Also, according to the International Monetary Fund; India is set to become the third largest economy in the world by 2030.

The government of India is looking at creating a strong entrepreneurial culture and vibrant economy by easing the regulations for expats, NRIs or foreign nationals to start businesses in India. Investment in India is not an easy task. There are many clearances and permissions to be obtained from various boards. The time taken to incorporate business in India depends upon the nature of the business and a myriad of factors. Roughly it takes about 3 to 5 months for expats to setup a business in India.

Foreigners and expats can invest their capital in many different ways. We'll take a look at three of the most popular ways foreign investment can happen in the Indian market.

• ADRs: ADRs (American Depositary Receipts) are the traditional way of investing in foreign companies. ADRs represent individual stocks and are traded on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or the Nasdaq. There are three different types if ADRs.
• Exchange trade funds and mutual funds:Foreign Institutional Investors (FII), have had access to the Indian market for 10 years or more. There are several ETFs and mutual funds available, which cover a number of different sectors within the Indian economy.
• Qualified foreign investor:QFI status allows you to invest directly in Indian companies via the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). You can also invest in Indian based mutual funds and corporate bonds.

There is no doubt that India offers exciting investment opportunities. But there are certain pitfalls. India is a developing country and therefore requires a huge amount of investment in infrastructure, before it can truly compete on the world stage. If this investment fails to take place, long term growth could be stagnated.

Apart from the above methods, foreign nationals can set up investment in India as a public limited company, project office, liaison office, branch office and joint venture. The routes for foreign investment are not limited.

Investment ideas suitable for Indian business

It is a very common belief that starting a business in India requires huge amount of investment. But not all businesses require too much investment. India is a land of opportunities and one can start a business with low investment or even no investment. You can start a business in India with a nominal amount of investment and grow your business.  India has a rapidly growing economy and has a massive population. In this article we will discuss some ideas for business start-up in India.

• Home canteen: Running a home canteen requires low investment in business. Off late, the business of food supply has gained a lot of popularity. It is a profitable small-scale business. You can start a business in India with a nominal amount of investment and grow your business.
• Dance instructor:You can work as a dance instructor and this does not require a whole lot of money. You can open your own school or work as a freelance dance instructor. Since dance forms an integral part of Indian culture, many parents like their kids to learn dance from a very early age. Therefore, there are plenty of opportunities for a dance instructor to earn both fame and money.
• Fashion designing:If you are good at art and like fashion, then fashion designing is the best choice. In order to make the most sought-after outfits you will have to undergo training in this field.
• Data entry jobs:This job does not require huge investment. If you have a computer at home and internet connection, you can start a data entry company. Filling up forms online is a popular example of data entry jobs on the Internet.
• Homemade chocolates:Making chocolates in your home is a moneymaking business. You just have to get the ingredients that are essential to make chocolates at home. After preparing the chocolates, pack them with fancy wrappers to add creativity and make them more attractive.
• Event management:It is a cost-effective business for people who are interested in organising different types of events and functions.
• Wedding consultant: In India, weddings are big events and take a lot of time. You can work as a wedding consultant to make things simpler and manage them for people who just don't have the time to do it for themselves.

Apart from this there are many small-scale businesses that require low investment. Business opportunities in India are tremendous. 

Source : articlesbase.com