Union Budget 2026: India raises overseas individual investment limits in equities under PIS

The Finance Minister Nirmala Sitharaman, in her Budget 2026 speech, has announced that the individual persons resident outside India will be permitted to invest in Indian equities through the Portfolio Investment Scheme with higher limits.

She announced that the individual investment cap is being raised from 5% to 10%, while the aggregate limit for all such investors will increase from 10% to 24%.

"Individual Persons Resident Outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme," Sitharaman said in her budget speech.


"It is also proposed to increase the investment limit for an individual PROI under this scheme from 5% to 10%, with an overall investment individual PROIs to 24%, from the current 10%," she further said.

Tanvi Kanchan, Associate Director & Head - NRI Business, Anand Rathi Share and Stock Brokers Limited, said these increases enable foreign investors to build more substantial positions in Indian companies, which could enhance market efficiency, broaden the shareholder base, and foster stronger long-term investment in Indian capital markets.

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Post the announcement, Divam Sharma, Co-Founder and Fund Manager at Green Portfolio PMS, said the Budget’s increased focus on NRI participation in Indian markets is a timely and strategically important move, especially at a time when FPI flows have moderated to some of their lowest recent levels. Enhancing participation thresholds under the Portfolio Investment Scheme and raising overall foreign holding limits meaningfully widens the pool of long-term capital available to Indian companies.

These reforms enable global Indians to invest directly in India’s growth story rather than relying primarily on FPI structures for larger allocations. With affluent Indian communities spread across the Middle East, North America, Europe, and Southeast Asia, this can unlock a structurally stable source of capital that is typically more patient and aligned with India’s long-term economic trajectory, Sharma further said.

And lastly, the growing role of evolved financial ecosystems such as GIFT City further strengthens this framework by providing globally competitive regulatory and operational platforms for cross-border investments. Taken together, these measures improve India’s capital-market depth, diversify sources of foreign inflows, and reinforce the country’s positioning as a preferred destination for global investors seeking exposure to high-growth emerging-market opportunities.

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