Budget 2026: Big boost for NRIs as investment cap doubles

New Delhi: In a major boost for overseas investors, Finance Minister Nirmala Sitharaman has announced measures in Budget 2026 to make investing in India more accessible for Non-Resident Indians (NRIs). The most significant change is the increase in the overall investment limit for Persons Resident Outside India (PROIs) in Indian companies from 10 percent to 24 percent. This move allows NRIs to invest a much larger share in Indian listed companies, opening up fresh opportunities in the equity market. The higher limit is expected to improve liquidity, deepen capital markets, and attract more long-term foreign investment into India. Until now, strict investment caps limited how much NRIs could collectively hold in Indian companies. By raising the threshold to 24 percent, the government aims to make Indian markets more globally competitive and aligned with international investment norms. Market experts say the reform could benefit both investors and companies. NRIs will get greater flexibility to diversify their portfolios and participate in India’s growth story, while Indian firms may find it easier to raise capital through equity markets. The announcement also reflects the government’s broader push to modernise India’s foreign exchange and investment framework. With stronger investor confidence and simplified rules, the move could help strengthen the rupee, improve capital inflows, and reduce dependence on short-term speculative investments. From a policy perspective, the decision aligns with the government’s goal of transforming India into a global financial hub. By encouraging overseas Indians to invest more in domestic markets, the government is tapping into a large and relatively stable investor base. Analysts believe this change could particularly benefit sectors such as banking, technology, infrastructure and renewable energy, where long-term capital is crucial. Over time, the higher investment ceiling is also expected to improve corporate governance by increasing institutional participation in Indian companies. Overall, Budget 2026’s move to ease investment norms for NRIs is being seen as a positive step towards attracting foreign capital, strengthening market depth, and supporting India’s long-term economic growth.