- Personal Finance
India-World's best for Financial Investment
Gone are the days when Swiss banks and USA were considered as heavens for financial investment.The swing has now changed in favor of India now because of economic liberalization introduced two decades ago.So,the tax savers and large scale investors have now found the easy way to invest their earnings (whether legal or illegal, that's different) in India and earn better financial appreciations.
Unattractive Swiss banks
'Swiss banks are now unattractive for financial smugglers'-opine Financial experts like Dr. Swaminathan Iyer. "Swiss banks sometimes pay even less than1% interest on investments by foreign depositors."-says Mr. Iyer-"So,instead of putting heavy deposits there, these people go to countries like Mauritius,Holland, etc,which are 'Tax heavens' for them.There,they invest in shares, real estates,etc which appreciates at least 10% to 20% every year."
After Economic liberalization
After economic liberalization in India,Foreign institutional investors(FII),NRIs, and corporates were 'invited' to invest in different sectors like-road transport, Airlines, infrastructure development, construction, etc.This opened them up a 'legal 'way to redirect their earnings back to India.Funds stored by Indian tax hoarders,politicians,and riches also got an inlet into the country in the name of FIIs and NRIs.
INDIA-FERTILE FOR PROFIT
"India is now a fertile land for investment in the whole world"-states Dr.Swaminathan."Since 2000A.D.,land and house value in USA has just raised only twice.Whereas in India,it has just doubled.Dow Jones Index of New york has only increased a little since 2000 A.D. But in India,it the share market index has raised six times since then.While the interest rate on govt.bonds is only 3% in USA, it is at 8% minimum in India.For these reasons,India is the best for Financial investment in the whole world.that's why 'black money' is returning to India in the past two decades"-continues he.
Less money in Swiss banks?
Though many people in India feel that about 280 lac crores of Indian rupees are there in Swiss banks, Some economists feel that much is not qt all there.They quote an example to substantiate this.India got the details of 26 Indians who had accounts in LGT bank in Lichtenstein city. Among these, 8 are guinine accounts, and rest 18 are the 'tax hoarders' .Out of these 18 also some may be guinine. These 18 people , in the past two years, transacted only Rs.36 crores." The 'black amount' in Swiss banks may not be much more" says DR.Swaminathan.
Present govt.in India is trying hard to get into bilateral agreements with different countries, to get the details of black money hoarded by Indians there. 'But, much of such money is invested in India alone.We must make efforts to bring it to light'-is the advise of these experts.
Now in the recent development, Indian Reserve Bank has decreased the REPO rate by 0.75%. It means a cash inflow of 48 thousand crore rupees into circulation through banks. This helps to decrease interest rates. Of course, it also compels the decrease the interest rates on deposits.But this is a clear indication that Indian Economic condition is stable and without any risk.This decrease in REPO rate has been implemented in second week of February.