INDIA – A Land of Billion Opportunities
A Nation with Rich Heritage
Who is an Non-Resident Indian (NRI)? NRI is a person, who is either Indian citizen staying abroad for more than 180 days in a year or a foreign citizens who were holding Indian Passports earlier or their parents/grandparents were Indian.
What is Overseas Citizen of India (OCI)? NRIs with foreign passports can enjoy dual citizenship by obtaining OCI Card. OCI card is a unique advantage. With OCI, I. NRIs do not need Indian visa for visiting India II. There is no restriction on the period of stay in India. III. Enjoy multipurpose multiple entries and lifelong permission to enter in India.
Categories of Funds for NRI Non Resident Ordinary Non Resident External (NRO) (NRE) Funds in India Funds (from) OUTSIDE India
Guidance for Easy NRI Investment Pre Investment process is one time process. Then after one can invest or withdraw at any time through Telephone, Email or any other means of communication. Most of the Functions can be carried online and reports can be obtained by login.
Repatriation of Investments & Profits Fund brought from outside India under NRE category invested in Capital Market is fully repatriable with profit and can be converted back to any foreign currency at prevailing exchange rates.
Remittance of Assets By NRI NRE: Investment + benefits in Capital market fully repatriable. NRO: Investment + benefits up to USD 1 Million is permissible. For full information, please view link https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9892
Indian Capital Market Well Structured Very well regulated
3 Steps Investment Process Pre-Investment Process Investment Process Post-Investment Process
Pre-Investment Process Obtain (PAN) from Income Tax Open Bank Account (NRO|NRE-PIS) with designated Bank Open Demat A/c with designated Depository Participant (CONCEPT) Registry with Member Broker of Stock Exchange (CONCEPT) Steps before Investing
Investment Process Development of Alternatives Investment Process Evaluation of Alternatives • Development of Alternatives. • Evaluation of Alternatives. Selection of Alternatives • Selection of Alternatives. • Execution of Alternatives. Execution of Alternatives. Executing Investment
Post Investment Process Reviewing and Restructuring. Record keeping and Accounting Income Tax (IT) Returns Investment Monitoring
Tax Regime In India Low Taxation a. Maximum Income tax @ 30% b. Capital gain tax @ 20% Benefits of Indexation in capital gain Benefits of DTAA for most of countries
Taxation on Equity And Equity Mutual Fund Long Term Capital Gain (LTCG) tax-10% Short Term Capital Gain Tax (STCG)- 15% Dividend Tax Free in hands of Investor.
Taxation on Debt And Debt Mutual Fund Capital Asset held for < 3 Years – 30% Capital asset held for > 3 Years – 20% Benefits of indexation for the period asset was owned.
Outlook on Economy and Equity
History of Indian Stock Market CAGR – 13.79% Data Source: ACE Equity
History of Indian Stock Market CAGR – 14.49% Data Source: ACE Equity
Advantage @ India Strong Demographics Falling Inflation Fastest Growing Economy Investment Cycle Picking Up Growing Disposable Income Government Reforms Growing Middle-class Falling Interest Rate consumption High Saving Rate Increased Regulation 20
India under NAMO 1.0 (2014-2019) India the Fastest Growing Economy- 6.6% to 7.7% GST- one nation one tax Demonetization Jandhan Yojana - 31 crore bank a/c opened Bharat Mala Project -To build 35000 km highway across 16 states Sagar Mala project - Modernizing 12 major and 185 minor ports Gram Jyothi Yojana - 18,452 villages Electrified Housing for all by 2022 -1.5 crore houses built Ayushmaan Bharat – Insurance Cover Mudra Loan - More than 12 crore beneficiaries Massive Infrastructure projects likes; Bullet trains, 14 lane Expressways, Freight Corridors etc. Average Highway construction 27 Km/day - Builds 33,361 km road in 4.5 year 21
India under NAMO 1.0 (2014-2019) Smart City Make In India Digital India Skill India Adarsh Gram Yojana Sukanya Samridhi Yojana Fasal Bima Yojana - Crop insurance scheme Yoga Day - June 21 as international Yoga day. Ujala Yojana - Distributed over 30 crore LED bulbs Insolvency and Bankruptcy Code 2016 passed Swachh Bharath Mission - This made entire world to look at India ! Improved relations with World Countries and uplifted the image of India at global level. 22
India under NAMO 2.0 (Again) Re-election of NDA with clear majority Narendra Modi – A visionary leader Pace of reforms will be faster under the strong government Good diplomatic relations maintained by Mr. Modi is boosting FDI “Targeting $5 Tn GDP mark by 2024” 23
Indian Economy Prospects Overall Demand Growth The Economy will continue to show strong growth on account of high level of internal consumption and exports. GDP There were hiccups in the short run due to introduction of structural reforms but the growth rate of the Indian economy is expected to stay in 7% and thereabouts Positive Road Ahead Digitization, Globalization, Favorable demographics, Structural reforms and Rising income should continue to bolster growth of the Indian economy Government Schemes & Regulatory Measures Government schemes such as “Housing for all by 2020”, “Digital India”, “Make in India”, “Bankruptcy Code” etc. should continue to provide impetus to the growth of Indian economy
India Version 2.0 (Under NAMO Again) Strong Government Modi government registered a win with a clear majority which showed faith of the Indian public in the government. Also, majority government can take bold steps for long term growth. Reforms India saw reforms like “Goods & Services Tax” and “Demonetization” from 2014 – 19 which can be considered as major surgeries which broke the backbone of black money Target to become a $5Tn economy by 2024 Government has targeted to become a $5 Tn economy by 2024. This looks quite achievable looking at the strong position of the economy and the leadership strength Business made easy According to IMF India ranks 77 th in the ease of doing business index. India jumped by a massive 65 places in last 4 years Data Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=184513
Strong Fundamentals GDP Growth Rate India is now growing faster than other emerging markets and this trend is expected continue going forward Low Corporate Debt Corporate Debt as a % of GDP now stands at 56.1% which is much lesser than other emerging economies FOREX Reserve As of June 14 2019, FOREX reserve of India is at $422 Bn. This is strong 38.8% growth in last 5 years Data Source: Motilal Oswal, RBI, https://urlzs.com/voNxV
More Positives 3 consecutive rate cuts – Repo rate now stands at 5.75%
Make in India ‘Make in India’ initiative was launched on September 25, 2014 by the Government of India with the aim to promote manufacturing in India. The program includes major new initiatives designed to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure. Make in India aims at 25 economy driving sectors including Biotechnology for GDP growth of the country .
E – Way Bill Introduction of Goods and Services Tax (GST) across India with effect from 1st of July 2017 is a very significant step in the field of indirect tax reforms in India. For quick and easy movement of goods across India without any hindrance, all the check posts across the country are abolished. The GST system provides a provision of e-Way Bill, a document to be carried by the person in charge of conveyance, generated electronically from the common portal. To implement the e-Way Bill system, ICT based solution is required. Hence, as approved by the Goods and Services Tax (GST) Council, a web based solution has been designed and developed by National Informatics Centre and it is being rolled out for the use of taxpayers and transporters
Goods and Service Tax GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax (GST) is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi- stage, destination-based tax that is levied on every value addition. In simple words, ) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.
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