Indian Government Schemes for NRI Investment
Non-Resident Indians looking to invest in India can benefit from several Indian Government schemes specially designed to encourage NRI investments. From mutual funds, real estate, and fixed deposits to government-backed pension schemes, India offers a diverse range of best government schemes for ...read more
4.6/5
35,162
ReviewsInsurance Partners
Trusted Customers
Policies Sold
Get AED 1 Million Returns*
Why Should NRIs Consider Indian Government Investment Schemes?
Indian Government schemes for NRI are recognised for their safety, regulated returns, and tax benefits. They offer a secure way for NRIs to diversify their investment portfolio and participate in India's growth story.
Benefits of Investing in India for NRIs
| Benefit | Description |
|---|---|
| Financial Planning | Helps in wealth creation for goals like retirement, children’s education, etc. |
| Passive Income | Earn interest/dividends to support family or future plans |
| Higher Returns | Indian markets offer better interest rates than many developed countries |
| Currency Diversification | Spreads risk by holding assets in INR and other foreign currencies |
Best Investment Plans in UAE
Some of the best Investment quotes in UAE & Dubai are:
Best Government Schemes for NRI Investment
Here’s a list of government schemes for NRIs in India you can invest in, along with their key features —
1. Equity Investments for NRIs
NRIs can invest in Indian stock markets through the Portfolio Investment Scheme (PIS), which is regulated by the Reserve Bank of India (RBI). To do so, you need to open an NRE (PINS) account with a designated bank branch. This is different from a regular NRE bank account and is used exclusively for trading in stocks.
- Demat & Trading Accounts: NRIs must open demat and trading accounts linked to their PINS account.
- Restrictions: Certain sectors like railways and tobacco are off-limits. NRIs from the USA and Canada should consult with advisors due to additional regulations.
2. NRE and NRO Fixed Deposits
Among the safest and best government investment schemes for NRIs, FDs continue to be a go-to option due to assured returns.
|
Feature |
NRE FD |
NRO FD |
|---|---|---|
|
Currency |
Indian Rupees |
Indian Rupees |
|
Repatriation |
Fully Repatriable |
Limited Repatriation |
|
Taxability |
Tax-Free |
Taxable in India |
|
Tenure |
1 to 10 years |
7 days to 10 years |
|
Interest Rates |
6%–7.5% (varies by bank) |
6%–7.5% |
Pros:
- NRE FDs offer tax-free interest and full repatriation
- Fixed returns and low risk
- Easy to open with NRE/NRO account
Repatriation Rules:
|
Account Type |
Repatriation Allowed? |
Limit |
|---|---|---|
|
NRE Account |
✅ Fully repatriable |
No cap |
|
NRO Account |
✅ Limited repatriation |
Up to USD 1 million per FY (April–March) |
3. Foreign Currency Non-Resident (FCNR) Deposits
FCNR deposits are ideal for NRI investment schemes in India and are best for those who want to avoid currency risk while earning in foreign denominations.
|
Feature |
Details |
|---|---|
|
Currencies |
USD, GBP, EUR, JPY, AUD, CAD, etc. |
|
Tenure |
1 to 5 years |
|
Repatriation |
Fully Repatriable |
|
Tax |
Interest is tax-free in India |
|
Risk |
No currency conversion risk |
4. National Pension System (NPS) for NRIs
The Pension Fund Regulatory and Development Authority oversees the NPS, a long-term retirement savings plan and one of the best government schemes for NRIs.
Key Features:
- Open to NRIs aged 18–70 years
- Contributions in INR through NRE/NRO accounts
- Partial tax benefit under Section 80C and 80CCD(1B)
- Choice of investment – Equity, Corporate Bonds, and Government Securities
- Up to 60% withdrawal allowed tax-free at retirement
Why Choose NPS?
- Government-regulated
- Low-cost pension investment
- Attractive long-term compounding
5. Sovereign Gold Bonds (SGBs)
These are government securities denominated in grams of gold, offering a way to invest in gold without storage hassles.
|
Feature |
Details |
|---|---|
|
Issuer |
RBI on behalf of Govt. of India |
|
Tenure |
8 years (exit option after 5 years) |
|
Returns |
2.5% interest annually + gold price appreciation |
|
Tax |
No capital gains tax if held till maturity |
|
Eligibility |
NRIs not currently eligible to invest in new issues, but can hold bonds bought when resident or via secondary market (check with broker) |
Alternative Investment Funds (AIFs) and Options
NRIs can invest in all three SEBI-approved categories of AIFs —
|
AIF Category |
Investment Type |
|---|---|
|
Category I |
Startups, SMEs, infrastructure |
|
Category II |
Private equity, debt, distressed assets |
|
Category III |
Hedge funds and high-risk trading strategies |
Additionally, here are some more profitable investment options for NRIs in India —
Real Estate
NRIs can invest in residential and commercial properties in India
- Permitted Assets: Residential and commercial properties
- Restricted Assets: Agricultural land, plantation property, and farmhouses
- Power of Attorney: NRIs can appoint a PoA to execute transactions on their behalf
- Tax: Subject to capital gains tax and TDS if rented or sold
Gold Investments
Gold continues to be a highly trusted asset class for Indian investors and one of the best government schemes for NRIs.
- Available Options: Gold ETFs, gold mutual funds, digital gold, and physical gold
- Sovereign Gold Bonds (SGBs): NRIs cannot make new investments, but existing holdings made before becoming an NRI can be held till maturity.
Mutual Funds
Mutual funds are one of the most accessible and flexible NRI investment schemes in India. You can invest through either an NRE or NRO account, and there is no need to open a PINS account.
Investments made through NRE accounts are fully repatriable, while NRO investments are subject to the $1 million annual limit
Taxation varies based on the type of investment, duration of holding, and applicable DTAA (Double Taxation Avoidance Agreement).
- Income in India: NRIs are taxed only on income earned or accrued in India
- Tax Regimes: Choose between the old and new regime based on suitability
- Professional Help: Consulting a tax expert is highly recommended to optimise tax benefits and compliance
A Quick Comparison Between Indian Government Schemes for NRIs
Here's a quick reference table —
| Scheme | NRI Eligibility | Tax Treatment | Repatriation |
|---|---|---|---|
| NRE Fixed Deposit | ✅ | Tax-free | ✅ |
| NRO Fixed Deposit | ✅ | Taxable | ⛔ (limited) |
| FCNR Deposit | ✅ | Tax-free | ✅ |
| NPS | ✅ | Partial Tax Benefits | Partial |
| Bharat Bond ETF | ✅ (via Demat) | Taxable | Depends on account |
| Sovereign Gold Bond | ❌ (new issues) | Tax-free (capital gains) | Depends on holding |
| PPF | ❌ (new accounts) | Tax-free | N/A |
| RBI Bonds | ❌ | Taxable | N/A |
How Can NRIs Start Investing?
- Open an NRE/NRO/FCNR account with a reputed Indian bank.
- Choose the scheme that matches your financial goal and risk appetite.
- Ensure you have a PAN Card and, if needed, a Demat account.
- Use online banking or broker platforms to apply or invest.
- Monitor investments and stay updated with tax rules for NRIs.
💡 Did You Know?
|
Final Thoughts
Indian Government schemes for NRI investment offer a secure and stable way to grow your savings in India. While some schemes like PPF and SGBs have restrictions, plenty of other options such as NPS, PMS, AIFs, and mutual funds are open for NRIs.
Before investing, assess:
- Repatriation needs
- Tax implications in both India and your resident country
- Tenure and returns
- Your risk tolerance
Pro Tip: Always consult a financial advisor or tax expert if you are unsure. With the right approach, NRIs can build wealth and stay connected with India’s financial growth.
Frequently Asked Questions
Can I transfer funds from an NRE account to an NRO account?
Yes, NRE to NRO transfers are allowed. But NRO to NRE transfers are restricted and subject to RBI conditions.
Can NRIs have multiple accounts with different Indian banks?
Yes, there’s no limit on the number of NRE/NRO/FCNR accounts across banks.
Can I invest in more than one NRI investment scheme?
Absolutely. You can diversify across multiple investment options if you meet RBI and FEMA guidelines.
Is repatriation allowed on all investments?
It depends on the scheme and account type. NRE and FCNR accounts allow full repatriation; NRO is capped at $1 million per financial year.
What documents do I need to invest in India?
Typically, a PAN card, Indian bank account (NRE/NRO), valid passport, and proof of overseas address are needed. Requirements may vary.
More From Investment
- Recent Articles
- Popular Articles
Last Updated : 28 Jan 2026How to Invest $1,000 in the UAE (Beginner-Friendly Guide 2026Wondering how to invest $1,000 in the UAE? Learn the best ways to invest 1000 dollars using ETFs, robo-advisors, SIPs, and low-risk options for long-term growth.
Last Updated : 22 Jan 2026How to Make Money Online in UAE & Dubai: Legal & Proven WaysLearn how to make money online in UAE and Dubai legally. Explore freelancing, side hustles, passive income ideas, and smart investing for long-term wealth.
Last Updated : 21 Jan 2026ETF vs CFD: Difference, Risks & Which Is Better for InvestorsETF vs CFD explained in simple terms. Learn the difference between ETF and CFD, risks, leverage, costs, and which option suits UAE investors best.
Last Updated : 21 Jan 2026ETF vs Stocks: Difference, Returns & Which Is Better for InvestorsETF vs stocks explained simply. Learn the difference between stocks and ETFs, risks, returns, and which option is better for beginners and long-term investors.
Last Updated : 15 Jan 2026UAE Visa Updates 2026: New Golden Visa Rules, Visit Visas & Who BenefitsUAE visa updates 2026 explained. New Golden Visa categories, visit visas, AI renewals, sponsorship rules & benefits for Indians and professionals.
Last Updated : 15 Jan 2026Sukuk vs Bonds: Key Differences & Which Is Better for Islamic Investors?Sukuk vs bonds explained for UAE investors. Learn the difference between Sukuk and conventional bonds, structure, returns & which is better for Shariah-compliant investing.
Last Updated : 14 Jan 202610 Best Mutual Funds in UAE to Invest to Right NowDiscover the top 10 best mutual funds in UAE and Dubai for 2026. Compare performance, features, and find the best mutual fund investment in UAE for your goals.
Last Updated : 14 Jan 202615 Best Short Monthly Investment Plan in UAE with High ReturnsRecurring Deposits (RDs) are among the best monthly investment plans in UAE for those who prefer to save consistently over time.
Last Updated : 12 Dec 2025Top 10 Best Trading Platforms in UAE for Beginners and Experts (2026)Explore the 10 best online trading platforms in the UAE, including eToro, Plus500, and Interactive Brokers. Learn about their features, benefits, and safety measures for both beginners and seasoned traders.
Last Updated : 10 Dec 2025 How to Invest AED 10,000 in UAE to Multiply Your Money?Explore the best investment plans in UAE's thriving market to invest your AED 10000 to help you turn your savings into a profitable venture.
Last Updated : 14 Jan 2026National Bonds in UAE Discover the benefits of National Bonds in UAE. Learn how to invest in National Bonds in Dubai, their features, and why they are a secure investment option.
Last Updated : 06 Jan 2026Top 5 SIP Plans for Smart Investing Discover the top 5 SIP plans for smart investing in the UAE. Explore the best mutual funds for SIP investments and make informed financial decisions.
