What's Happening?
India's Budget 2026 introduces measures to facilitate Non-Resident Indians (NRIs) investing in Indian markets. The changes include easing rules under the Portfolio Investment Scheme and increasing foreign holding limits. These reforms aim to attract long-term,
stable capital from NRIs, enhancing market liquidity and aligning Indian equities with global portfolios. The budget also highlights the role of financial hubs like GIFT City in streamlining compliance and expanding product access for NRIs.
Why It's Important?
The budget's focus on NRI investment is strategic, aiming to deepen India's capital markets and diversify foreign inflows. By allowing NRIs more direct investment opportunities, the government seeks to strengthen India's economic trajectory and attract patient capital. This move could enhance market stability, improve liquidity, and support better valuations in key sectors. The reforms also position India as a more attractive destination for global investors seeking long-term growth.
