Indian Diaspora is spread across the world andits populations are about 28.46 million, as on 2015. It is continuously increasing and bringing pride and funds to India.Different types of investment options are available to NRIs/PIOs including term deposits in NRO/NRE/FCNR(B) accounts, debt instruments, portfolio investments and Foreign Direct Investments. They can establish proprietorship firms, partnership firms, domestic companies, foreign companies, Venture Capital projects and undertake sick industrial units. The return on investment in most of the cases is directly proportional to the risk level associated with it. The applicable Tax Rate is one of the deciding factors for the investments in manufacturing and commercial activities.NRI’s can avail the benefits of the Double Taxation Avoidance Agreements (DTAAs) entered into by India with several countries which attempt to avoid the double taxation on the same income in India and in the Residing country.