Non-resident Indians (NRIs), a vital force driving India's economic growth, are eagerly awaiting the upcoming Union Budget, hoping that Finance Minister Nirmala Sitharaman will introduce measures that foster an "investor-friendly" environment. Their goal is to see reforms that encourage NRI investments in India, including the launch of NRI-focused investment schemes and attractive tax incentives.
According to Rajwinder Singh, a business tycoon based in Switzerland, one of the primary obstacles for NRIs is India's bureaucratic hurdles and complex regulatory framework. He highlighted challenges like acquiring land, obtaining business clearances, and even transferring funds to their home countries, which are often hindered by paperwork, approvals, and delays. These hurdles can discourage potential long-term investors and cause frustration, prompting them to seek alternatives.
Given these issues, Rajwinder emphasized that NRIs are hoping that the upcoming budget will address these barriers by reducing bureaucratic delays, simplifying tax and investment regulations, and improving the overall ease of doing business. “We seek more than just tax benefits; we want genuine reforms that make investing in India a hassle-free experience,” he stated. He also mentioned that only a more transparent and efficient system will enable India to fully tap into the potential of its global diaspora.
Deepika Rai, CEO of InNor Consultancy in Norway, and long-time member of the Norway India Chamber of Commerce and Industry (NICCI), highlighted that Scandinavian investments in India have totaled between $15-18 billion over the past decade. Investments from Norway have grown steadily at a rate of 8-10% annually since 2014, focusing on sectors such as renewable energy, maritime, IT, manufacturing, and financial services. She also noted that the Norwegian Government Pension Fund Global (Oil Fund), which previously allocated just 1% of its assets to India, is now increasing its stake at an annual growth rate of 12-15%. This trend, along with the new 2024 Norway-India Trade Agreement, is expected to further boost Norwegian FDI into India. Deepika hopes the budget will include tax policies that benefit both NRIs with business connections to India and corporate investors seeking long-term growth opportunities.
