Dr. Deepak Chopra wrote an opinion piece in the Huffington Post today asking if India is having a crisis of soul. As he points out, India's fall of growth by 5% since 2010 boils down to the millions of individual Indian workers being "actively disengaged" and only about 9% of the population who are actively engaged build new products and services or generate new ideas driving economic growth. As the video clip from CNN's Fareed Zakaria GPS shows, India is further dropping out of favor with FDI (as opposed to portfolio investment) taking new hits and challenging India's status as a BRIC economy.
This again highlights the fact that blind optimism in the performance of Indian market instruments is largely misplaced and I would encourage both NRI as well as resident Indian investors to look for safer shores for their investments. RBI's Liberalised Remittance scheme provides an option for Indian residents to invest overseas. NRIs may use local options to invest in local or overseas investments.
