NRIs contribute to economic growth of India

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Kochi Apartments and flats are being built in large numbers to cater to the growing needs of the people of Kerala. To cater to varied client list customized building and construction is the trend nowadays. The real estate market in Kochi and other major cities of Kerala is expanding vertically and horizontally in an unprecedented manner. This has led to a sustained growth in the economic status of the state of Kerala too.

NRIs play important role in the economic growth of India. The finance minister P Chidambaram called investment and knowledge the two key instruments for sustaining growth. He continued to say that, increased investment from NRIs require a change in their time horizon with regard to India and that it would be worthwhile examining setting up an institutional mechanism for attracting ideas and knowledge from NRIs and using these for the benefit of India's economic development.

Under RBI guidelines, facilities available to returning NRIs or PIO is that, they may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.

They may open, hold and maintain with an authorized dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment in any form outside India.

An NRI or PIO on returning to India for permanent residence enjoys the following exemption from wealth tax for seven years after return to India:

1. The money and the value of assets brought by him
2. Value of the assets acquired by him out of such money within one year immediately preceding the date of his return
3. Basic exemption of Rs. 15 lakhs is also applicable.

With multinational companies picking from the cream of attractive resource pool of India and the country offering multiple job avenues to explore, many NRIs have begun exodus to India. They are generally able to fill up for top and middle level positions in major MNCs.