Investing in India

Investing in India for American NRIs

Use the information on this page at your own risk!!

As an Indian living in the US, you would want to invest some of your money in India. This, not only because you are Indian, but also because the Indian economy is growing very fast. There are various means to invest in India of which I will give you an introduction to US Mutual Funds, ADRs and NRI accounts.

NRI Accounts

There are three types of NRI accounts (as far as I know) - NRE, NRO and FCNR. I do not have any NRI accounts because I haven't had enough time to research the tax implications and I don't want my tax return to be complicated or file a tax return in India. The advantage of NRI accounts is that they offer high interest rates, atleast compared to the US. You should verify any of this information for yourself before opening an account.

NRE: Non-Resident External account: Account is in Rs. No restrictions on transfer of money in and out of India.

NRO: Non-Resident Ordinary account: Account is in Rs. Needed for money earned in India such as dividends, rent etc.Restrictions on transferring money out of India.

FCNR: Foreign Currency Non-Resident: Account is in Foreign Currency, dollars, pounds, euros etc. The interest rates may differ by currency. No restrictions on transferring money in/out of India.

All of the above types of accounts may be current (checking), savings or fixed deposit (CD).

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