As of May 2012, the population of overseas Indians, including NRIs and PIOs stood at around 21.9 million, with the population of NRI millionaires reaching approximately 180,000 in 2012, according to 2020 Foresight: Non-Resident Indians 2013 market research report.
The US accounted for the largest proportion of NRI millionaires, followed by the UK, the UAE, Canada, Hong Kong, Singapore and Indonesia. The value of the worldwide wealth management market for NRI millionaires valued US$634 billion in 2012. This value is expected to increase from US$720 billion in 2013 to US$1.065 trillion in 2017, at a CAGR of 10.27% between 2013 and 2017 as per the research at http://www.reportsnreports.com/reports/269687-2020-foresight-non-resident-indians.html
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The value of inward NRI remittances increased from US$50 billion in 2008 to US$ 69.3 billion in 2012, registering a CAGR of 8.5% between 2008 and 2012. Gulf countries held the largest share in sending remittances to India, followed by the US.
The rising incomes of migrants in Gulf countries due to rising oil prices are the main reason behind the increasing inward remittance from Gulf Cooperation Council (GCC) countries.
India’s strong economic growth was the key driver for the increasing investment of wealth by overseas Indians in India. Backed by increased investment and consumption, India’s GDP recorded a CAGR of 6.96% between 2008 and 2012 to reach a value of US$1.06 trillion.
Furthermore, Indian government has undertaken several initiatives to stimulate the country’s overall economic growth, which included infrastructure development, reforms in country’s power generation industry, and investment in strengthening the country’s telecommunications and internet networks.
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By GlobalDataA suitable investment environment and strong economic growth made the country a preferred destination for NRI investment over the last five years.
Although the NRI wealth management sector is currently dominated by foreign banks such as Citibank and HSBC, Indian banks such as ICICI, HDFC and SBI are gradually showing an increased interest in the market. Indian banks are also expanding their presence overseas in an attempt to take advantage of the growing NRI market. This increase in competition is expected to help serve the varying demands of the NRI population, and increase market penetration.
The Indian government has undertaken several initiatives to encourage NRIs to invest in India. It has formulated a proactive FDI policy which allows 100% foreign ownerships in a large number of industries, and majority ownership in all industries except banks, insurance companies and airlines. It has also created The Ministry of Overseas Indian Affairs (MOIA) dedicated to Indian nationals settled abroad.
The MOIA is tasked with forming partnerships with overseas Indian investors to encourage them to invest in India, and offers a wide range of services to this group, including diaspora, financial, emigration and management services.
The ministry also seeks to ease process of overseas Indians to carry out business in India, including provision of appropriate advisory services through knowledge partners, and helping to form partnerships between Indian companies and overseas Indian businesses.
