This article provides an overview of key financial and economic topics relevant to Non-Resident Indians (NRIs), covering retirement income, India's export market, and the country's industrial sector. Retirement Planning: A Shift Towards Mutual Funds The article suggests that while fixed deposits have been a traditional choice for Indian investors, there is a growing trend toward …
A Guide to Financial and Economic Trends for NRIs in the UAE
This article provides an overview of key financial and economic topics relevant to Non-Resident Indians (NRIs), covering retirement income, India’s export market, and the country’s industrial sector.
Retirement Planning: A Shift Towards Mutual Funds
The article suggests that while fixed deposits have been a traditional choice for Indian investors, there is a growing trend toward mutual funds. Citing a report from the Reserve Bank of India, it highlights that mutual funds are now a preferred investment vehicle due to declining interest rates on bank deposits. For retirees, mutual funds offer a systematic withdrawal plan (SWP), which allows for monthly income to cover living expenses while the remaining corpus continues to grow. This method can provide both a regular income stream and potential for long-term capital appreciation, making it an attractive option for NRIs planning for their parents’ retirement.
India’s Economic Resilience
The article addresses concerns about a decline in Indian exports due to US tariffs. It explains that Indian exporters are diversifying their markets by tapping into Europe, Africa, and East Asia. This effort is supported by new trade agreements, such as the one with the European Free Trade Association (EFTA), which is expected to significantly boost exports. It also notes that these agreements will encourage foreign investment, creating new jobs and manufacturing bases in India.
The text also highlights positive signs in the industrial sector, which is a key driver of economic growth. According to the HSBC India Manufacturing Purchasing Managers’ Index (PMI), manufacturing activity saw a momentum boost in August, with an increase in new orders and production. This is supported by rising Goods and Services Tax (GST) collections, which signify healthy economic activity and improved tax compliance, even in smaller states.
