India to attract higher NRI investment from UAE post polls

UAE-based NRIs are expected to increase their investments inflows into India after the country's upcoming general elections, according to a new survey.            

The survey titled 'The NRIs' Investment Inflows into India – A Pulse Study' stated that two-thirds of NRI respondents were optimistic that a new government will create a conducive environment for investor-friendly retirement planning in India.  

A majority of respondents believed that any new Indian leadership would bring about positive regulatory developments which would lead to more foreign investments, financial services reforms, better infrastructure and ultimately greater economic growth, the survey by Standard Life - a leading long term savings and investments company - reported.  

"It is interesting to note that the NRI community looks to increase their investments in India after this period of perceived pre-election uncertainty regardless of any changes," 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," he said.  

With significant economic clout, the UAE's sizable 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.  

Like most expatriates, NRIs are seen to be committed towards building wealth and securing their financial future. The survey also noted that NRI investments were spread across a wide range of asset classes, including formal savings schemes (45 per cent), long-term investments plans (30 per cent), formally constituted retirement plans (26 per cent) and government-backed infrastructure funds (15 per cent).            

The general elections in India started from today and the next government is likely to be formed late next month.