New Delhi : Budget 2026 has introduced a series of measures aimed at making it easier for Non-Resident Indians (NRIs) to invest directly in Indian markets. According to Divam Sharma, Co-Founder and Fund Manager at Green Portfolio PMS, the government’s push to expand NRI participation is both timely and strategic.
The budget eases rules under the Portfolio Investment Scheme and raises overall foreign holding limits, enabling more global Indians to invest directly in India’s growth story. Sharma says these reforms give NRIs more flexibility to invest without relying solely on foreign portfolio structures. With large Indian communities across the Middle East, North America, Europe and Southeast Asia, he believes this shift could unlock more patient, long-term capital aligned with India’s economic trajectory.
Sharma notes that GIFT City’s strengthened regulatory environment makes NRI investment easier through streamlined compliance and more product access. Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, says the expansion of the Portfolio Investment Scheme for overseas individuals signals India’s intention to diversify foreign participation beyond large institutions.
Allowing Persons Resident Outside India (PROI) to invest directly in equities, and doubling the per-investor limit from 5-10%, widens the ownership base while keeping systemic risks controlled.
Srivastava adds that increasing the aggregate foreign holding limit from 10-24% expands headroom in sectors where ownership limits often restrict flows. She says PROI investors tend to be long-term participants, which can improve liquidity, reduce marginal volatility and strengthen price discovery over time.
A third perspective comes from Shashank Udupa, Sebi-registered RA and Fund Manager at Smallcase. He says allowing PROIs to invest directly in listed equities through PIS is a meaningful step toward deepening India’s equity markets. The higher investment limit, he notes, supports better valuations and more stable ownership in large-cap sectors such as banking, financial services, capital goods and technology.
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