What's Happening?
Budget 2026 introduces measures to facilitate Non-Resident Indians (NRIs) investing directly in Indian markets. The changes aim to deepen India's pool of long-term, stable capital amid slowing foreign
portfolio investor inflows. The budget eases rules under the Portfolio Investment Scheme and raises foreign holding limits, allowing more global Indians to invest in India's growth. The reforms provide NRIs with more flexibility to invest without relying solely on foreign portfolio structures. The budget also highlights the role of emerging financial hubs like Gujarat International Finance Tec-City, offering competitive platforms for cross-border financial services.
Why It's Important?
The budget's focus on easing investment rules for NRIs is significant for India's capital markets, as it seeks to attract more long-term, stable capital. By expanding NRI participation, the budget aims to diversify foreign inflows and strengthen India's position as a high-growth destination for global investors. The reforms are expected to improve market liquidity, reduce volatility, and enhance price discovery. The increased foreign holding limits and streamlined compliance processes are likely to attract more NRIs to invest in Indian equities, supporting better valuations and stable ownership in key sectors.
