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India-World's best for Financial Investment

Updated on March 11, 2012
Logo of the Indian Reserve Bank
Logo of the Indian Reserve Bank
Indian currency.1000 rupee notes
Indian currency.1000 rupee notes

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 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 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.

Additional note

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.


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    • prasadjain profile image

      Dr.S.P.PADMA PRASAD 5 years ago from Tumkur


      It is true that now( as on 8th June, 2012) India's economy is under stress and the rupee value has gone down.

      The GDP growth rate also is reported to be around 5.6 instead of estimated 8.4 With all this, India is hopeful of regaining its financial strength.Sliding of rupee against dollar is nearly stopped.So, Indian economic condition may not fall as that of America,Greece etc.

    • thelyricwriter profile image

      Richard Ricky Hale 6 years ago from West Virginia

      Voted up Prasadjain. Very well spoken and you make valid points about the current finacial situation. It is good to know that there is stability in the world downturn. Well worth looking into. Great job.

    • ratnaveera profile image

      ratnaveera 6 years ago from Cumbum

      Great and Informative Hub for the investors. You have also added great points. It will be a good encouragement for those who want to invest in our country India. Thanks a lot Prasadjain!

    • prasadjain profile image

      Dr.S.P.PADMA PRASAD 6 years ago from Tumkur


    • Nick82 profile image

      Nick82 6 years ago from Northern Minnesota

      Good hub - Something to consider.