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A stimulus package designed to provide relief to the badly hit export sector and pull down lending rates to boost domestic demand is the latest agenda of the UPA government. Plans for faster implementation of infrastructural projects under Public Private Partnership (PPP) Programme within 100 days of its formation, is also on the most immediate agenda of the UPA government. India Infrastructure Finance Ltd has been allowed to raise rs 40, 000 crore through tax free bonds to finance projects.

To augment the dip in industrial production the government plans to increase refund of duty against taxes paid on export items along with restrictions on rate cuts as revenue losses due to tax cuts have been huge in last three fiscal packages.

The positive effects of such efforts are being felt in the sectors of automobile, steel and cement along with rise in domestic spending and revival of real estate due to fall in home loan interest rates. Further fall in interest rates by two basis points to encourage banks to pass on the benefits to customers is on the RBI’ s agenda.

Source : Times of India

RBI has announced new policies for the NRIs investing in the reality sector in India. This has seen the NRIs investing more in residential projects than ever before. Earlier NRIs had to make sure that they took permission to invest. However, now with the latest guidelines made by the RBI, the NRIs don’t have to take prior permission if they are holding Indian passports. As a result of this there has been a spurt in investment by NRIs in realty sector.

The property acquired by the NRIs can be rented, transferred or sold if required. However some other regulations prohibit NRIs and Person of Indian Origin (PIOs) to acquire property like agricultural land, plantations and farmhouses.

It has also been seen that mainly young NRI professionals, property workers are investing in the property. The residential properties which they were holding were used as holiday homes as well as to keep safe investment. To attract NRIs, the developers have cut their prices as well as home loan interest which have resulted in increasing the demand for residential properties rather than retail or office real estate.

Let’s see whether in the coming time the realty market will see an upswing and more investments from NRIs.

Source: Economic Times

Good news for NRIs. The Reserve Bank of India (RBI) has decided to give higher return on the non –resident external (NRE) and non-resident ordinary (NRO) saving accounts. The interest will be calculated on a daily basis rather than the monthly basis which is being followed now.

It is expected that the new system will prove beneficial to the NRIs who keep their surplus funds to use for trading or investment purposes. This move will be a boon for NRI customers but the cost of raising funds for Indian banks would rise. NRE deposits contain repatriated money while NRO accounts contain money received within India from investments and other sources.

The move will help customers who use surplus balances for trading purposes. One can rely on their savings accounts and not worry about monthly end balances but with customers who park funds in short term deposits, this scheme seems less attractive.

Source :- SiliconIndia