Rising participation by non-resident Indians highlights growing interest in India’s stock market, as overseas investors expand their presence in domestic equities
The number of active non-resident Indian (NRI) investors in the Indian stock market has more than tripled in seven years, reaching 957,243 in July 2026, according to depository data compiled by Business Standard.
Their combined equity holdings have also increased sharply, rising from around ₹1.5 trillion at the end of the 2018-19 financial year to approximately ₹5.6 trillion in July 2026.
The growth reflects the expanding participation of Indians living overseas in domestic equity markets, although market movements and changing investment preferences continue to influence their exposure.
Regulatory changes introduced this year could further support overseas participation. Following the Reserve Bank of India’s announcement in June that the investment framework for non-residents would be eased, the permitted individual investment limit in a company under the Portfolio Investment Scheme was raised from 5 per cent to 10 per cent. The aggregate limit was increased from 10 per cent to 24 per cent.
These revised limits also cover overseas citizens of India (OCIs) and other persons resident outside India, including eligible foreign nationals. The Union Budget had announced plans to liberalise individual investments in Indian equities earlier this year.
Despite the long-term increase, NRI equity holdings moderated in the 2025-26 financial year amid falling share prices before recovering by July 2026
However, investing directly in Indian shares can involve additional administrative requirements for overseas investors. The Portfolio Investment Scheme requires a designated bank account, bank-mediated reporting of transactions and delivery-based trading. These procedures have historically made direct equity investment less convenient for some NRIs, encouraging many retail investors to consider mutual funds instead.
Gujarat International Finance Tec-City (GIFT City) is emerging as another route for overseas investment, with lower costs and streamlined compliance among its potential attractions. The International Financial Services Centres Authority proposed measures in June to simplify know-your-customer procedures, including a unique identification number that could allow verified credentials to be used across regulated entities.
Meanwhile, investments through India diaspora-linked funds rose from $536.2 million in the quarter ended September 2025 to $851.1 million in the quarter ended June 2026, according to an IFSCA bulletin.
The data points to a growing overseas investor base, though future participation will depend on market conditions, investment opportunities and the ease of accessing Indian financial markets.
