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Additional benefits for NRIs include higher duty-free allowances, permission to bring one new laptop, rationalised customs rules, and simplified Tax Collected at Source (TCS) norms
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Together, these measures send a clear signal that India is keen to strengthen its economic ties with its global diaspora
India’s Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, has brought several positive changes aimed at encouraging Non-Resident Indians (NRIs) and Overseas Indians to invest more actively in the country. At a time when foreign institutional investors have been pulling money out of Indian markets, these measures are expected to help balance capital flows and support the rupee.
One of the most important announcements relates to equity investments. Persons Resident Outside India (PROIs), including NRIs, will now be allowed to invest directly in shares of Indian listed companies through the Portfolio Investment Scheme. The individual investment cap has been doubled from five per cent to 10 per cent per investor. At the same time, the combined limit for all individual PROIs in a company has been raised sharply from 10 per cent to 24 per cent, offering much wider room for participation.
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The budget has also simplified property transactions involving NRIs
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Resident buyers will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) when purchasing immovable property from a non-resident seller
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This move is expected to reduce paperwork and delays in real estate deals
Small taxpayers with foreign assets have been given long-awaited relief. The government has introduced a time-bound scheme to declare foreign assets and overseas income, especially where past non-disclosure was unintentional. The tax or fee payable will depend on how and when the assets were acquired, offering a more practical and fair approach.
Further, certain non-resident businesses will be exempted from Minimum Alternate Tax. These include specific activities under presumptive taxation, cruise ship operations, and services or technology linked to setting up electronics manufacturing units in India.
Additional benefits for NRIs include higher duty-free allowances, permission to bring one new laptop, rationalised customs rules, and simplified Tax Collected at Source (TCS) norms. Together, these measures send a clear signal that India is keen to strengthen its economic ties with its global diaspora.
