23% of NRIs from the US, UK, Canada, Singapore prefer Mumbai as destination for business or investment: Survey

Witnessing India’s tremendous economic progress, the country has become the leading destination for NRIs, attracting a significant influx of NRI-led investments or businesses. Given the abundance of investment opportunities, from mutual funds, and bonds to real estate, the country has myriad options that are bound to tantalise every NRI's financial palette. Apart from the lucrative investment landscape, India’s emergence as the global hub for entrepreneurship and a thriving ecosystem of start-ups lures returning NRIs to tap into this booming economy.

Government initiatives to support start-ups and lower costs of running and setting up business have also boosted sentiment. Against this backdrop, a recent survey conducted by SBNRI, an NRI-centric fintech platform revealed the top Indian cities they prefer to either run a business or invest. Furthermore, the report delved into the factors shaping NRIs' decisions when selecting these destinations, delivering a concrete picture of returning NRIs' mindset. The company surveyed around 500 NRIs.

Source: SBNRI

The SBNRI report unveiled that 23% of overall returning NRIs prefer Mumbai, with 18% NRIs from the US followed by 14% NRIs from Canada, along with 11% from both Singapore and other countries as the top choice for business or investments. On the other hand, only 4% of Canada and Singapore-based returning NRIs prefer Bangalore, whereas 9% of returning NRIs from other countries choose Bangalore as the top choice. Similarly, while Delhi, the capital of the country, is preferred by only 3% and 2% of NRIs from Canada and Singapore, respectively, it is certainly a leading choice for 7% returning NRIs from other nations for investments and business.

Talking about the increasing number of NRIs returning to India for business or investment, Mudit Vijayvergiya, founder of SBNRI said, “India is poised to become the global economic powerhouse driven by the unprecedented development and growth occurring in every ascent of the industrial landscape, making it the leading hotspot for returning NRIs, who equally want to leverage the unique opportunities that the country has to offer. From growing business to investment networks, along with employment opportunities, infrastructure progress and rampant urbanisation, the country offers all to NRIs.”

These opportunities aren’t merely limited to Tier1 cities, but with government initiatives, development opportunities have also opened their doors in Tier 2 and 3 cities. As per SBNRI’s report, 12% and 16% of returning NRIs from the USA and other countries want to set up either business or investment in Tier 2 and 3 towns. Despite the progression in Tier 2 and 3, 13% of Canada-based NRIs and 7% of Australia returning NRIs opt to set up their business or investment in Tier 1 cities, with merely 5% from both countries respectively wanting to choose Tier 2 and 3 cities.

The survey also explored that 10% of NRIs from Canada, followed by 4% from Singapore and 3% from other countries, search for robust infrastructure before setting up a business or investment. While 10% and 4% of NRIs from Canada and Singapore search for good infrastructure, the number is significantly reduced, with only 2% from both countries searching for employment opportunities before making destination decisions. On the contrary, 8% and 9% of NRIs from other nations look for employment and government and political stability, respectively, before setting up a business or investment.

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Delving into the lucrative offerings that attract NRIs for setting up business or investment in India, the report revealed that 12% of Canadian NRIs and 9% of NRIs from the UK and other nations are attracted by the higher return on investment in India. On the other hand, 14% of NRIs from other countries are attracted by India’s growth opportunities, whereas 9% from Canada and 7% from the UK are attracted by the same. Furthermore, 8%, 6% and 3% NRIs from other countries, Canada and the UK, respectively are attracted by the ease of setting up business in India.

Considering India's rapidly growing and transforming healthcare infrastructure, the SBNRI survey report also disclosed that 16%, 14% and 12% NRIs from other nations, Canada and Singapore, respectively are looking forward to investing or setting up business in the Healthcare sector. While IT services remain a prospective option for 8% and 6% of NRIs from other countries and Canada, respectively, only 4% of Singapore-based NRIs want to pursue the same sector. At the bottom of the chart lies the tourism and transportation sector, with only 3% of NRIs planning to invest or set up a business in the particular segment.

The overall survey clearly indicates India’s tremendous progress, showcasing the multitude of factors that have transformed it into a lucrative business and investment destination.