The India Growth Story: Why NRIs Should Pay Attention Now | Smart Investing with Basil Financials

From Marina Bay to Mumbai, A Moment of Opportunity

It’s a Sunday morning in Singapore. You’re sipping kopi, scrolling through financial news, and there it is again: another headline shouting “India is the fastest-growing major economy.” You roll your eyes. You’ve heard it before.

But this time, the numbers aren’t just impressive; they’re historic. The IMF expects India’s GDP to grow 6.6% in 2025-26, while most major economies are expected to slow. Corporate profits are up, spending is strong, and the country is drawing global investors from Tokyo to Toronto.

For NRIs in Singapore, this isn’t just trivia to impress friends at dinner. It’s a signal. A real, time-sensitive opportunity to convert India’s macroeconomic energy into your long-term wealth.

At Basil Financials, we help you do exactly that, not by chasing trends, but by aligning your financial story with India’s growth journey.

The Real Growth Engines: Digital, Infrastructure, and Everyday Spending

1. Digital India, The New Economic Backbone

India’s digital economy is surging ahead. In June 2025, UPI handled 18.39 billion transactions worth ₹24 lakh crore. It served almost 500 million users, as reported by the Press Information Bureau. India is now a global leader in fast payments. This growth supports entrepreneurship, e-commerce, and financial inclusion.

For NRIs, that means investment opportunities in listed tech firms, thematic mutual funds, and ETFs that mirror India’s digital economy, all accessible through regulated NRE/NRO investment channels.

2. Infrastructure That’s Changing the Map

In the last decade, India’s government infrastructure spending has jumped. It went from about ₹2 lakh crore in FY2014–15 to ₹11.21 lakh crore in FY2025–26. That’s over a five-fold rise. This ongoing effort is changing the country's physical and industrial base. New airports, highways, and green-energy corridors are creating jobs, improving logistics, and boosting regional growth.

For investors, this momentum reflects structural strength and policy continuity. Consistent capital spending not only fuels corporate growth but also creates lasting value across construction, materials, and allied sectors.

Why NRIs in Singapore Should Look Homeward

Singapore is known for stability, but stability can also limit yield. Most fixed deposit rates in Singapore are low right now. Many banks and comparison sites show 12-month retail rates between 1.0% and 1.6%. These trimmed yields show how banks and digital lenders are cutting deposit rates.

Singapore’s equity market has gained support from government actions and appealing valuations. The Straits Times Index has bounced back from its lows, providing solid short-term returns for investors. Earlier in 2025, analysts upgraded Singapore equities due to dividend yield and policy backing.

Singapore local ETFs have also posted strong returns over the past year and year-to-date as the market picked up speed. This suggests that Singapore equities can offer yield and stability. However, they may not deliver the same high-growth opportunities as India’s markets right now.

Here is what makes India an important complement to many Singapore-based NRIs:

• Higher return potential, especially from Indian equity funds and thematic sectors that benefit from rapid consumption and digital adoption.

• Diversification adds value, since adding India exposure balances a portfolio concentrated in developed markets or ASEAN equities.

• Easier access, with SEBI and mutual fund platforms enabling digital KYC and NRI routes for Singaporean residents.

• Tax efficiency, when structured under the India-Singapore DTAA and with appropriate NRE, NRO and PIS account planning.

When we work with NRIs in Singapore, we map these trade-offs to your goals, so you capture India’s growth while preserving the stability and tax clarity you value in Singapore.

The Fine Print: Challenges Worth Respecting

India’s growth potential is strong, but no investor should proceed without eyes open.

Headline retail inflation is no longer in double digits; it fell to about 2.10 % in June 2025, and around 1.55 % in July 2025, reaching multi-year lows. That creates favourable conditions, though it reinforces the need to stay vigilant about risk.

Currency fluctuations remain a factor for NRIs when converting profits to SGD. Through structured reviews and hedging, your plan at Basil Financials takes this into account.

And don’t forget global volatility: shifts in US interest rates, oil price swings and geo-political shocks still ripple through India’s markets. The smart approach lies in patience, systematic investing and reviewing every 6-12 months rather than reacting to every headline.

At Basil, we view volatility as an opportunity, a chance to rebalance portfolios rather than panic over red numbers.

What This Means for You

The India story is unfolding right now. The next phase of growth, powered by digital inclusion, infrastructure upgrades, and rising consumption, could redefine wealth creation for the next decade.

If you’ve been sitting on the sidelines, wondering when to start, this is your moment. The opportunity isn’t just in India’s GDP, it’s in how you align your investments with that momentum.

You don’t need to have every number figured out. You just need a plan that listens to your story.

At Basil Financials, that’s what we do. We turn big-picture growth into your personal wealth story.

Take the First Step Today. Stop guessing, start progressing. Book your goal-mapping session with Basil Financials.