Re: Small Question from Hyderabad

Say, I have $100,000 and I want to do something with it. Being an NRI,
one of my choices is to send it to India. One option is to donate it to
some cause (temple, charity, or PM relief fund) in India. Another
option is to buy gold in India and keep it there hoping it will
appreciate. That means, I am expecting appreciation. The limited amount
of gold in India, and the large demand for it may give me the
opportunity for appreciation of my investment. Do I want to take the
risk of someone stealing my gold? I can invest my funds in stock in
Indian companies. Will the stock go up or down and what is the risk? Do
I trust the management of the companies to be fair to stockholders?
Shall I buy land in the city or in the village? Is there demand for the
same so that I get an appreciation over time? Will someone steal my
land by occupying it never to move out? Can I take such risk.
Investment (overseas or local) is always a matter of expectation of
appreciation and tolerance for risk.
Moreover, one buys land only when someone else is selling at a mutually
agreed price (except in instances of eminent domain by government).
There is nothing like an absolute price for any commodity (including
land) anywhere anytime. It is a function of supply and demand (of the
commodity and money).
Furthermore, prior owners make more money (than their paper value) and
do something with it. If they put it into the local (Indian) economy,
the net result is good. As land becomes expensive, people and
governments should choose proper uses for that land. In other words,
there must be policies and choices to move to less expensive places
(read villages).
Finally, although NRI's constitute brains that moved overseas, local
brains are in charge of selection and allocation of scarce resources
(e.g. land). NRI funds, however they come in, will help the local
economy most of the time.
(Disclosure: I own no land or property in India.)