Budget 2026 Signals A Clear Outreach To NRIs

• NRI equity investment limit per company doubled to 10%, aggregate cap raised to 24%.
• MAT exemption announced for non-residents under presumptive taxation.
• TCS on foreign education and medical remittances cut to 2%.
• Property sale compliance eased; buyers no longer need a separate TAN.

The Union Budget 2026–27 has marked a notable shift in the Centre’s approach towards Non-Resident Indians, positioning the global Indian diaspora as a more active participant in India’s investment and growth story. Finance Minister Nirmala Sitharaman unveiled a series of measures aimed at easing compliance, lowering tax friction and expanding investment access for non-residents, particularly in equities and real estate.

The most significant reform relates to equity investments. The budget has doubled the individual investment limit for NRIs and overseas residents in listed Indian companies from 5% to 10% of paid-up capital. At the same time, the overall ceiling for all non-resident investors has been increased to 24%. Officials see this as a move to deepen capital markets and attract stable overseas capital at a time of global financial uncertainty.

Tax relief formed the second pillar of the government’s NRI-focused initiatives. Non-resident taxpayers opting for the presumptive taxation regime will now be exempt from Minimum Alternate Tax (MAT), a change intended to simplify filings and reduce disputes. The finance ministry said the exemption would reduce compliance burdens and provide greater clarity to overseas taxpayers with limited operations in India.

Liberalised Remittance Scheme

The budget also addressed concerns around remittances under the Liberalised Remittance Scheme. Tax Collected at Source on overseas spending for education and medical treatment has been reduced to 2% from 5%, offering immediate relief to families supporting students and patients abroad. The move is expected to improve cash flows without altering reporting requirements.

In the real estate segment, long-standing procedural hurdles for NRIs were eased. Buyers of property from non-resident sellers will no longer be required to obtain a separate Tax Deduction and Collection Account Number to deduct TDS. The government said this simplification would reduce delays in transactions and encourage smoother property sales involving overseas Indians.

Taken together, the budget measures underline a broader policy intent to integrate NRIs more closely into India’s financial ecosystem, moving beyond remittances to long-term investment participation. Market experts note that while the reforms are structurally positive, their success will depend on clarity in implementation and stability in global markets.

The 2026 budget, analysts say, sends a clear signal that the government sees the Indian diaspora not just as external stakeholders, but as strategic partners in the country’s next phase of economic expansion.