DELHI India -- Dear Overseas
Indian Investor, where will you keep your money safely?, asks Swami Anand Kul Bhushan.
In UK? Really, after Brexit and the emerging economic slide?
In USA? What with its huge deficit and debt and slow
OK, in the west, then.
What about the almost negative rates of interest after
you deduct the inflation from your returns?
Plus the global political scenario getting bleaker with
So let’s face it, India is the best bet right now.
In the current global economic slowdown, India is the
fastest growing economy with over seven per cent growth.
Now the big hurdle for investment will soon be removed
with the passing of the constitutional bill for the goods
and services tax (GST) on 3rd August 2016, marking a
historic day in the economic history of the nation.
As a major economic reform post the liberalisation of
1991, the passage of the GST bill will finally lead to the
realisation of ‘One Nation One Market’ dream.
One overseas Indian auditor called it ‘Brexit in reverse’
which means that while Britain left the bigger market of
Europe, India has created its own bigger single market for
goods and services.
This means more economic growth estimated at between two
and three per cent after the bill coming into action
targeted for 1 April 2017.
"This is India’s biggest single tax reform since
independence," wrote an Indian management consultant settled
in the USA.
He added this means:
Simply put, it means GST is a single tax on goods and
service that includes VAT, service tax, central sales tax,
excise duty, entertainment tax, additional customs duty,
special customs duty, Octroi and Entry Tax, Purchase Tax,
Luxury Tax, and Taxes on lottery, betting and gambling, and
many other taxes at state level.
GST will simplify taxation
system; bring in more revenues and more efficiency.
While transporting goods from one state to another, say
from Punjab to Maharashtra, the trucks had to wait for many
hours, even days, at tax collection booths to pay the local
taxes after arguing and no doubt corruption.
Now the trucks will move non-stop across states.
Just imagine the time gained!
How does it all impact the overseas Indian investor?
Higher economic growth means better returns for
With the GST now a fait accompli, India can throw up
immense opportunities of growth in the decade ahead.
seems to be at the cusp of a great new era of economic
growth and development and this bodes well for investors to
look at equity investments as a powerful tool for long-term
When overseas Indians deposit their savings in India,
they get higher returns than in the west.
When they invest in equities or mutual funds, they will
get even better returns as the market will become more
bullish and when they invest in industry, the single market
will bring higher profits.
The digital infrastructure for collecting GST is claimed
to be in place but the tax officials have to be re-trained
by April 2017.
The real test of GST will however lie in