Budget 2026: What It Means for NRI Investors in India (2026)

The Union Budget 2026–27,

presented on 1 February 2026, signals a clear intent by the Government of India to increase NRI participation in Indian financial markets. Through changes to the Portfolio Investment Scheme (PIS), rationalisation of remittance-related taxes and simplified compliance, the Budget aims to make investing in India easier, more transparent and more attractive for Non-Resident Indians.

This blog explains the key measures in simple terms, supported by data and metrics, and outlines how they influence NRI investment decisions.

Government Push to Attract More NRI Capital

A central theme of Budget 2026 is the encouragement of stable, long-term NRI capital inflows. India receives over ~USD 135 billion in annual remittances, the highest in the world, and a growing share of this capital is being channelled into financial assets.

The government’s focus is to convert more of this remittance flow into productive investments, particularly in equities and real assets.

Key policy direction includes:

• Liberalisation of equity investment rules for NRIs
• Lower friction in overseas remittances
• Simplified real estate transaction compliance

These measures collectively reduce entry barriers and improve ease of investing from abroad.

Portfolio Investment Scheme and Higher NRI Investment Limits

Under Budget 2026, the government expanded the scope of the Portfolio Investment Scheme to allow deeper NRI participation in Indian listed companies.

Key changes include:

• Individual NRI investment limit in a listed Indian company increased from 5 percent to 10 percent
• Aggregate NRI investment limit in a single company increased from 10 percent to 24 percent

This change is significant. Earlier, ownership caps limited how much exposure an NRI could take to a high-quality Indian business. With higher limits, NRIs can now build larger, long-term equity positions, aligning better with wealth creation goals rather than short-term allocations. Over time, this can also improve market liquidity and depth, benefiting the broader equity ecosystem.

NRI Gains from Budget 2026

Budget 2026 delivers tangible benefits for NRIs across investing and money management.

Key gains include:

• Greater flexibility to invest directly in Indian equities
• Reduced upfront tax burden on overseas spending and remittances
• Faster and simpler compliance for property transactions

The reduction in Tax Collected at Source (TCS) on overseas tour packages, education and medical remittances from earlier higher rates to 2 percent improves cash flow. Although TCS is adjustable against tax liability, lower collection reduces temporary cash blockage, which matters for large transfers.Simplified real estate rules, such as allowing PAN instead of a separate TAN for property-related tax deduction, reduce procedural delays and compliance stress for NRIs selling property in India.

Impact of Budget 2026 on Foreign and Overseas Assets

Budget 2026 also influences how NRIs think about global asset allocation. With easier access to Indian markets and reduced transaction friction, India becomes more competitive relative to other investment destinations.

Expected impacts include:

• Higher allocation to Indian equities due to relaxed ownership caps
• Improved efficiency in managing India-linked real estate assets
• Better cash-flow management between foreign and Indian assets

While the Budget does not alter income tax slabs or capital gains structures for NRIs, it lowers operational friction, which plays a critical role in cross-border investing decisions. Over time, this can encourage NRIs to rebalance portfolios toward India, especially as the economy continues to grow at over 6 percent annually.

What This Means for NRI Investment Strategy

Budget 2026 is not about short-term tax relief. It is about structural ease and flexibility. For NRIs, this means India is positioning itself as a more accessible market for long-term capital, not just remittance inflows.

NRIs who align their strategy with these changes can:

• Build meaningful equity exposure to Indian growth
• Manage overseas and Indian cash flows more efficiently
• Simplify compliance across investments and property

Pivot Money View

From a long-term perspective, Budget 2026 is a positive step toward integrating global Indian wealth with India’s growth story. Higher equity investment limits under PIS show intent to trust and attract diaspora capital. Lower TCS rates and simpler compliance reduce friction that previously discouraged active participation.

While core tax rates remain unchanged, the real win lies in ease of investing and operational clarity. For NRIs with Indian assets or long-term plans in India, this Budget creates a more supportive environment to invest, consolidate and grow wealth with confidence.

If you would like a personalised view on how these changes apply to your portfolio, Pivot Money can help you evaluate and structure your India-linked investments more efficiently.