NRIs (Non-Resident Indians) are playing a growing role in driving economic growth in South India through their investments in various sectors. These investments not only fuel infrastructure development but also create good employment opportunities for the local population.
According to Statista, the value of non-resident Indian (NRI) investment in primary real estate in India was $11.5 billion in 2017, with an estimated increase to $25.7 billion by 2022.
Distribution of NRI investment
The distribution of NRI investment in primary real estate across India in 2017 was as follows:
Table of contents [Show] United Arab Emirates | 22% |
United States | 21% |
Singapore | 14% |
United Kingdom | 7% |
Other Countries | 36% |
Investment Trends:
| - Between 2019 and 2020, NRIs constituted 10% of total real estate investments in India. |
| - This figure has consistently increased, reaching 15% today. |
| - The projection is that NRIs will contribute to 20% of the Indian real estate market by 2025. |
Top Investment Destinations:
| - Bangalore and Mumbai are the top investment destinations for NRI buyers. |
| - Bangalore is the preferred choice for 29% of NRI investors, followed by Mumbai at 24%. |
A survey conducted by a fintech platform revealed that a significant number of NRIs residing in the US, Singapore, the UK, and Australia perceive India as an attractive investment hub, with 53% of NRIs based in Singapore affirming that India can give exceptional returns on investment compared to other countries.
NRIs are displaying significant interest in prominent cities like Bengaluru, and Hyderabad, as well as smaller tier-two cities such as Thiruvananthapuram and Kochi, which have emerged as potential investment destinations. NRI investments can lead to more employment opportunities in various sectors, reducing unemployment rates and poverty levels in cities.
Other Top Sectors Where NRIs are Investing:
Information Technology (IT) | South India, particularly Hyderabad, Bengaluru, and Chennai, has emerged as a major IT hub attracting significant NRI investments. From establishing IT parks to funding startups, NRIs contribute to the booming IT sector, generating direct and indirect employment for software developers, data analysts, network engineers, and other IT professionals. |
Manufacturing | With its strategic location and skilled workforce, South India is attracting NRI investments in sectors like automobiles, pharmaceuticals, and textiles. These investments create jobs for production workers, quality control inspectors, logistics personnel, and engineers. |
Healthcare | Growing demand for healthcare services is attracting NRI investments in hospitals, clinics, and medical equipment manufacturing. This sector generates employment for doctors, nurses, paramedics, technicians, and administrators. |
