Indian Government Schemes for NRI Investment 2025

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

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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)

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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

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Taxation for NRIs in India

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

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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?

NRIs can hold only one NRE (PINS) account
NRI investment in an Indian company is limited to 10% of paid-up capital (can go up to 24% with board approval)
Intraday trading is not allowed for NRIs in the Indian stock market
NRIs from USA and Canada may face additional restrictions due to FATCA regulations

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.

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Frequently Asked Questions

Yes, NRE to NRO transfers are allowed. But NRO to NRE transfers are restricted and subject to RBI conditions.

Yes, there’s no limit on the number of NRE/NRO/FCNR accounts across banks.

Absolutely. You can diversify across multiple investment options if you meet RBI and FEMA guidelines.

It depends on the scheme and account type. NRE and FCNR accounts allow full repatriation; NRO is capped at $1 million per financial year.

Typically, a PAN card, Indian bank account (NRE/NRO), valid passport, and proof of overseas address are needed. Requirements may vary.

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