How Can NRI's Benefit From The Falling Indian Rupee

The Indian Rupee is at War and is the worst Asian currency. On one side imports and associated business are becoming costlier whereas exports are making good money. Recent Q3 revenue of Indian  companies driven by exports reported higher revenue in terms of Rupees, thanks to Rupee Falling.   The fluctuation of Rupee Vs Dollar has been a boon to NRI (Non Resident Indians). Around six month ago the USD – INR exchange rate was hovering around Rs 44 to $ 1 whereas today it is Rs 50.5238.  The better exchange rate coupled with investment option,  is visible in the World bank Report. The Report states that Indians across the world are leading the global remittance.  

Just sending money is not enough. You need to plan it. Some of the ways NRI can utilize the Rupee Vs Dollar fluctuations are

1-      If you have bought a home loan in India, now you can transfer more money to finish the pending EMI(Equated Monthly Installment) at the earliest. Good News is that Reserve Bank of India has decided to remove Prepayment penalty on home loans. In addition Prospective buyers can also invest freshly in real estate market.   So a flat that used to cost Rs 1 crore (1,00,00,000) 6 months back is now available to NRIs at less price. This is equivalent to a builder offering you a cash discount .  Having trouble doing the math? Just google and you will get your answer

2-      The Indian stock market is at its low.  Lot of blue-chip stocks, with strong fundamentals are available at bargain price. Investing in equity is one of the good options. You can set up a Systematic Investment Plan (SIP) to buy the stocks.  Global debt crisis, slowing world economies and rising inflation etc can cause stock markets to fall further. So SIP is a good alternative.

3-      The interest rates on NRE (Non-resident External) and NRO(Non-Resident Ordinary) accounts have increased. The money you save in these accounts will provide you better returns due to higher rates.  Current NRO account interest rates for 1 year is in the range of 9.00% to 9.25% at banks such as HDFC Bank and Bank of Baroda. Transfer money to these accounts and save more money during Rupee Falling

4-      There are people who want to do good to the society. You might be thinking that a small contribution will not make a good difference. But if you transfer $100, it is equivalent to Rs 5000. This contribution will not only help you get tax rebate but also help a person in need

 Keep In mind the different options you have and with good planning you can utilize the current Rupee Vs Dollar fluctuations to your advantage. Remember with every opportunity there is also a risk. For instance if you buy a mortgage loan for long term, the favorable exchange rate will not stay forever. So you might have to shell out more money to meet your ambitions. So before you spend, consider other personal goals and the availability of funds before making use of the Rupee Falling