Finance Minister Nirmala Sitharaman, while presenting her ninth Budget in the Parliament today on February 1, 2026, has proposed that a person resident outside India (PROI) can now invest more in Indian equity via the portfolio management scheme.
NRI were already allowed to invest in Indian equities, but the overall investment by NRIs is currently limited to a certain percentage of the paid-up capital of an Indian company. The FM has proposed upping the individual investment limit for Persons Resident Outside India.
NRI INvestments
Major relief has been granted to Indians living abroad as the 2026 budget has increased the overall investment limit for Persons of Indian Origin (PIOs) from 10% to 24%. This significant change will enhance opportunities for these individuals to participate in and contribute to India’s economic growth.
“Overall limit NRI can invest in Indian company through Portfolio scheme has been increased from 10% to 24%,” says Neeraj Agarwala, Partner, Nangia & Co LLP.
Liberalization of NRI Investments
Liberalizing Non-Resident Indian (NRI) investment in capital markets is expected to facilitate their investment activities and subsequently decrease reliance on Foreign Portfolio Investment (FPI). “Liberalization of NRI investment in capital markets would make it easier for them to invest and should reduce dependence on FPI investment,” says, Sunil Gidwani, Partner – Nangia Global Advisors LLP.
Sanjay Kumar, Director – Nangia Global Advisors LLP says, “Ease of Doing Business is strengthened as persons resident outside India are permitted to invest in listed equities via the portfolio route. Doubling the individual cap to 10% and raising the aggregate limit to 24% will deepen markets and also boost FDI inflows.
For PROI investors in listed Indian equities, the investment limit has been raised from 5% to 10%, while the aggregate cap has increased from 10% to 24%. This move is expected to deepen capital markets and strengthen foreign investment inflows.”
A person resident outside India (PROI) includes any individual or entity that does not meet India’s residency criteria under FEMA. This broadly covers NRIs, foreign nationals, and overseas entities who live or operate outside India for employment, business, or any long-term purpose. It also includes offices or branches located outside India, even if they are owned or controlled by an Indian resident. In simple terms, if a person or entity is based outside India and does not qualify as a resident, they are treated as a PROI.