80% Global Indians Investing In India, Says HSBC Report

Almost 80 per cent of global Indians surveyed are investing in India as against 85 per cent in their country of residence, and 56 per cent have increased their investment in India in the last three years, according to HSBC’s first annual Global Indian Pulse report. HSBC surveyed over 4,152 people across nine markets.

Global Indians refer to Indians living across the US, Canada, the UK, the UAE, Saudi Arabia, Hong Kong, Malaysia, Singapore and Australia. According to the report, property (46 per cent) and stocks and shares (47 per cent) are the most common asset classes.

Most global Indians investing in India expect to increase how much they invest. A third (32 per cent) of third-generation global Indians are planning to increase their investments in India “a great deal” in the next three years. Almost 45 per cent of global Indians are making their investments for friends and family.

Raghu Narula, head of wealth and personal banking, HSBC India, said, “It is widely acknowledged that global Indians make an enormous contribution to the prosperity of countries all around the world. Our report highlights the strength of their emotional and financial connections with India.”

The Covid Trigger

The pandemic has driven a change in attitudes towards investment in India, with 72 per cent of global Indians surveyed saying the pandemic has made them feel closer to friends and family in India.

And a third (36 per cent) of those already investing in India saying they have proactively increased their investments in India with the aim of promoting positive change, while 29 per cent are increasing their investment in India with the aim of supporting India’s Covid recovery.

This commitment is just as high among third-generation global Indians, with 63 per cent making the decision to increase their investments, despite having never lived in India.

The third generation is more motivated to aid economic recovery after the pandemic than other generations (32 per cent compared to 26 per cent of the first and second generations).

ESG Concerns

Sustainability plays a major role in investors’ decision-making, with more than three quarters (76 per cent) of global Indians saying environmental and social initiatives such as renewable energy and skills development are a key part of their decision-making when investing in India.

Global Indians are planning to make a range of sustainable investments in both India and their country of residence in the next two years. According to 76 per cent of global Indians, environmental or social initiatives and funds are a key part of their decision to invest.

The India Connect

The report examines whether global Indians plan to either return or live in India in the future, and while just 4 per cent of global Indians surveyed have never visited India, three-fifths (61 per cent) report they are planning to live in India at some stage in their lives. This is not necessarily a permanent move though, with over three-quarters (78 per cent) of second-generation and more than four-fifths (85 per cent) of third-generation global Indians saying they still plan to retire in their current country of residence.

Global Indians maintain strong connections back to their homeland regardless of whether they are first, second or third generation. More than three quarters (77 per cent) of respondents said they felt a strong connection with India, and four-fifths (80 per cent) said they are very interested in the future success of India.

Even for those who have never lived in India, the connection remains strong, with third-generation global Indians feeling just as attached to India as those who were born there. The data reveals that while first (69 per cent) and second generation (52 per cent) global Indians put their family at the top of the list they miss about India, while third-generation global Indians have a different perspective, as most of them say they miss food (42 per cent) and the culture (39 per cent) more than they miss family (30 per cent).