‘NRIs, be part of India’s growth’

3 December 2011

DUBAI - The 11th annual Khaleej Times Indian Investment Seminar and Meet opened in Dubai on Friday with business leaders, major banks and fund managers urging non-resident Indians to be a part of the remarkable growth opportunities the emerging global economic powerhouse offers. Siddharth Balachandran, chairman of the India Club and managing director of the Bumga Group, kicked off the two-day investment event with a call to invest in India’s great future. Siddharth Balachandran at the Khaleej Times Indian Investment Seminar and Meet in Dubai on Friday. — KT photo by Mukesh Kamal In his inaugural address at the event, which has lined up noted financial analysts and economists, Balachandran pointed out that the enhanced value proposition that the current currency conversion rates offered was a major factor in the renewed investment thrust of the average Indian expatriate, especially in the Gulf region. Siddharth Balachandran, Chairman India Club visiting the India Investment Seminar and Meet after inaugrating it in Dubai on Friday. –K.T.Photo by Mukesh Kamal “NRIs [non-resident Indians] are seizing the opportunity with regard to remittances to India and also are enjoying the added benefits of better value for loan repayments, debt servicing and asset procurement,” he said. Balachandran maintained that the fundamental cause for the remittance spurt was not only the current value proposition, but also “the unstinting belief in the Indian economy.” “India is indeed shining, and what is adding to the lustre are India’s financial markets, India’s regulatory framework and its strong financial institutions,” he said. Siddharth Balachandran, Chairman India Club cutting the ribben to inaugrate the India Investment Seminar and Meet after inaugrating it in Dubai on Friday. – K.T.Photo by Mukesh Kamal Balachandran said the relationship an Indian citizen has with his motherland could be encapsulated like this: “You can take an Indian out of India, but you can never take India out of an Indian.” Bankers and fund advisors participating in the investment seminar said they expected an increased response from NRIs looking for lucrative and safe investment options in their homeland in the backdrop of a very irresistible remittance rate with rupee plunging to an all-time low against the dollar-pegged dirham. They said for NRIs it was the most opportune time to get their earnings from the Gulf converted to Indian rupees and parked in their non-resident external bank deposits to avail of the prevailing better returns of investment in India. According to Somer Massey, chief executive of Kotak Mahindra Financial Services, the exchange rate-interest rate tango has presented a big opportunity for NRIs in the UAE. “With the rupee at unprecedented lows, we have witnessed a surge in remittances to India over the past few months.” In fiscal 2010-11, India witnessed a dramatic spurt in remittances at $56 billion. With rupee at its weakest at present, remittances might skyrocket again this year, analysts at the seminar said. Battered by a widening current account gap, slowing economic growth, climbing oil import bill, deepening euro crisis, and plummeting stock markets, the Indian rupee had touched historic low of 52.73 against the dollar on November 22, albeit on Friday, it showed strong signs of resilience by touching 51.37 as traders unwound long dollar positions in anticipation of a pick-up in foreign inflows after global moves to ease the pressure on European banks. Speakers taking part in the two-day seminars include Anunaya Kumar of DSP BlackRock Investment, Amier Hamsa of State Bank of India, V.R. Iyer of Central Bank of India, S.C. Baral of Bank of Baroda, K.V. Rao of Karur Vysya Bank, Selvan Rajadurai of Tamilnadu Mercantile Bank, Satyajit Mohanty of Union Bank of India, K.R. Vijayakumar of Federal Bank, Dinesh Ahuja of SBI MF, P.R. Yeshodhar of Canara Bank and K.V. Shamsudheen of Barjeel Geojit Securities. On the better investment climate of India vis-a-vis the rest of the world, analysts believe that as a well-regulated economy India is a in better position compared to the increased levels of stress that the US and eurozone economies face. With the rupee at record lows they believe India is becoming sought-after destination for NRI funds. Given India’s strong economic fundamentals and its vibrant industrial growth rate, investors from around the world are assured of the long-term growth prospects the third largest Asian economy offers, economists argue.