Weak rupee a blessing! NRIs increase their home-bound remittances

Weak currency in their home country has prompted Indian expatriates living in the Gulf to invest more in domestic assets. Non-resident Indians – especially those living in the Gulf – have increased their home-bound remittances over the past few months.

Non-resident Indians have invested over Rs 15 crore in equities during April and May, as per data collated from the BSE. In April alone, NRIs invested close to Rs 20 crore in Indian equities market – the largest pay-in in over seven months.

According to Gulf-based brokers and investment advisers, NRI investments in debt instruments are many times higher than equity investments. Gulf-based investors account for over 60% of the money that comes through the exchange route, brokers said.

Read more: The Economic Times

Looking for an investment? Contact the Ireo team to discuss real estate opportunities across India. Pictured above: Ireo Waterfront in Ludhiana, Punjab

Goldman Sachs seals India’s biggest office space deal

US banking group Goldman Sachs has agreed to take on lease 1.6 million sq ft of office space – an area the size of nine football fields – in Bangalore, in what is the biggest recorded commercial property deal to date in India.

The two-step transaction, according to people familiar with the transaction, will see the New York-headquartered investment bank initially taking up one million square feet. Another 600,000 square feet will be taken up in the second step of the transaction.

The space, housed in a purpose-built block of three buildings for Goldman, is located on Bangalore’s Sarjapur outer ring road. To be built on 14 acres by local builder Kalyani Developers, it will be ready in 2017 and house a bulk of the bank’s staff in Bangalore, now scattered across six offices in a city IT park.

Read more: The Times of India

NRI News

NRO, NRE or FCNR term deposit: Which one to pick?

The rupee has been in slide mode for some time now and in order to arrest that fall, the Reserve Bank of India (RBI) has been taking several steps to attract dollars into the country.

One slew of changes were introduced in December 2011 when the central bank deregulated interest rates on Non Resident Ordinary (NRO) savings accounts and Non Resident External (NRE) term deposits.

Read more: The Economic Times

How NRIs’ India mutual funds are taxed in US

Mutual funds in India maybe a great investment avenue. Dividends are tax free; long term capital gains on equity funds are also tax free. And if you have been a long term investor, chances are, you built a fairly good corpus thanks to the robust Indian equity market. But if you are an Indian American, Uncle Sam is going to want a share of your pie. That’s because the US tax code collects tax on the global income of its residents and citizens. What is more peculiar is that tax is levied on global income as per the rules that apply to that kind of income in the US. Foreign mutual funds in particular face this peculiarity.

Read more: The Economic Times

Transportation

Solar plane begins 1st transcontinental flight from Switzerland

An experimental solar-powered airplane has taken off from Switzerland on its first transcontinental flight. Swiss Andre Borschberg is piloting the jumbo jet-size Solar Impulse plane non-stop from Payerne, Switzerland, to Madrid, Spain. His colleague Bertrand Piccard will take the helm of the one-seater aircraft for the second leg to the Moroccan capital Rabat next week.

On their 2,500-kilometer (1,554-mile) journey the pilots will have to overfly the Pyrenees mountains at night and cross the windy Straits of Gibraltar from Europe to Africa.  The mission is described as the final dress rehearsal for the team’s round-the-world flight in 2014. The project began in 2003 and is estimated to cost about $100 million over 10 years.

The Economic Times

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