India's Performance vs Other Countries' Performance on CAGR Basis
India is emerging in the global market as one of the top leaders. Over the years, it has shown consistent growth compared to many developed countries. Because of its strong presence, NRI investment in India has grown massively, making the economy stronger and more reliable for wealth creation.
| Country / Index |
Apr 2014 |
Apr 2019 |
Apr 2024 |
5-Year CAGR |
10-Year CAGR |
| India (NIFTY 50) |
6,700 |
11,700 |
22,600 |
14% |
12% |
| India (BSE SENSEX) |
22,400 |
39,000 |
74,000 |
13% |
12% |
| USA (S&P 500) |
1,860 |
2,940 |
5,100 |
11–12% |
10–11% |
| Germany (DAX) |
9,600 |
12,300 |
18,000 |
7–8% |
6–7% |
| Canada (S&P/TSX Composite) |
14,500 |
16,500 |
22,000 |
6–7% |
4–5% |
| Australia (S&P/ASX 200) |
5,400 |
6,300 |
7,800 |
4–5% |
3–4% |
| UK (FTSE 100) |
6,600 |
7,400 |
8,000 |
1–2% |
2% |
| Singapore (Straits Times Index) |
3,200 |
3,350 |
3,200 |
0% |
0% |
| China (Shanghai Composite Index) |
2,050 |
3,050 |
3,100 |
0% |
4% |
| Emerging Markets (MSCI Emerging Markets Index) |
1,050 |
1,080 |
1,040 |
0–1% |
0% |
| UAE (Dubai Financial Market Index) |
4,500 |
2,800 |
4,200 |
8% |
0% |
| Qatar (Qatar Stock Exchange Index) |
12,500 |
10,300 |
10,000 |
-1% |
-2% |
*The above comparison is based on price index returns in local currency. Total return (including dividends) and currency-adjusted returns may vary, especially for developed markets like the US.
Best Investment Options for NRIs in India
Here are some NRI investment options in India:
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As ULIPs are a combination of insurance and investments, NRIs rely on them, making it one of the most popular NRI investment plans in India.
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Investment choice is available across equity, debt, and balanced funds based on risk and goals.
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It allows you to switch between funds, so your investment can be adjusted when market conditions change.
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The ULIPs also offer you a top-up feature, which helps add extra money to the plan whenever there is surplus income.
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Since the investment is market-linked, it provides the potential for better long-term wealth creation.
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Offers DTAA and NRI tax benefits in India under Section 80C and Section 10(10D), as per the Income Tax Act, 1961.
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With the right retirement planning, NRIs can make a safe and secure financial future when they return to India.
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Investing regularly while working abroad helps build a strong retirement fund. It is one of the best investment options for long-term goals.
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Returns can be earned through interest or market-linked growth. You can choose based on your risk level.
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Pension plans, Annuity plans, and National Pension Scheme (NPS) are some of the best retirement plans for NRIs to invest in.
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Child plans offer triple benefits together, i.e. life cover, waiver of premium, and maturity benefit. These benefits work together to secure the child’s future.
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Your child will receive a lumpsum amount in case of your uncertain demise. This creates financial protection even in your absence. All future premiums are also waived off, and the plan remains as is.
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At the end of the policy term, the child receives a maturity amount. This can be used for education, marriage, or other important goals.
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Child plans combine life insurance and investment in one plan. This helps in both protection and savings.
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Capital Guarantee Plans are ideal investment plans for NRI in India for those who prefer safety and stable returns.
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These are NRI investments in India that safeguards principal from economic downturns.
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A portion of investment is allocated to debt for capital protection.
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The remaining portion is invested in the equity market through equity funds.
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Along with financial growth, it also offers insurance cover and protects your family in case of any unforeseen situations.
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Upon maturity, investors receive the total investment amount plus market-linked returns.
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Guaranteed return plans help you know the maturity amount in advance, making planning simple.
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Life insurance cover is included, which protects your family in case of any unforeseen event.
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The plan is not linked to the stock market, so it is a low-risk investment option for stability.
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A secure fund is built over time to support long-term financial goals like retirement or education.
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It is easy to understand and manage, making it suitable for beginners and safe investors.
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A government-backed investment option, NPS can help you build a decent corpus upon retirement.
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Only Tier-I accounts of NPS can be opened by NRIs with their NRE or NRO account.
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The eligible age to open an NPS is from 18 to 70 years. A Permanent Retirement Account Number (PRAN) is assigned upon account opening.
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You can claim tax deductions of up to ₹1.5 lakh under Section 80C and an extra ₹50,000 under Section 80CCD(1B).
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At retirement, you can withdraw up to 60% of the corpus as a lump sum, which is tax-free.
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A minimum of 40% of the corpus is used to buy an annuity, which gives you regular pension income after retirement.
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Fixed Deposits are a safe option for NRIs. Your money grows with fixed returns.
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You can invest for short or long periods. It can start from 7 days to 10 years.
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The interest rate is fixed when you invest. You know your return in advance.
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NRIs can open Fixed Deposits using NRE or NRO accounts. It is very easy to do.
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Interest from NRE Fixed Deposits is tax-free in India.
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NRO Fixed Deposits are taxable, and TDS is deducted.
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You can choose how to get interest. You can take it monthly, quarterly, or at maturity.
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A safe way for NRIs to protect money during inflation and uncertain times.
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Can be bought in different forms like physical gold, gold ETFs, sovereign gold bonds, and digital gold.
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Prices change based on global demand, currency rates, and market conditions.
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Easy to buy and sell whenever money is needed.
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Provides stability to your portfolio when other options are not performing well.
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Real Estate
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Real estate is a way for NRIs to invest in property in India.
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NRIs can buy houses, flats, and commercial properties in India.
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Agricultural land, plantation property, and farmhouses are not allowed for NRIs to purchase in India.
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Properties can give huge long-term profits if invested mindfully. Renting is also a way to earn a regular income.
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Buying and selling residential and commercial property in India follows FEMA rules.
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Mutual funds invest money in a mix of stocks, bonds, and other assets, which helps reduce overall risk.
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They are managed by professional fund managers who take care of buying and selling decisions.
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Investors can easily invest or withdraw money whenever needed, giving good flexibility.
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Returns are earned in Indian currency, which can increase value when converted to foreign currency.
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ELSS are a type of mutual fund that helps in saving tax.
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It comes with a lock-in of 3 years, hence lets you build wealth over long-term.
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It offers tax benefits under Section 80C of up to ₹1.5 lakh in a year.
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Returns on ELSS depend on the market fluctuations.
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Stock Market Investments
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NRIs can buy or sell stocks through stock exchanges and build a strong portfolio.
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Portfolio Investment Scheme (PIS) account linked to an NRE or NRO bank account can be used for investment.
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Trading happens through registered brokers, and every transaction is reported to the bank under the PIS route.
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NRIs can invest in equity shares and exchange-traded securities. The prices fluctuate daily based on the market.
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IPOs provide new opportunities for NRI investment in India to invest in freshly listed Indian companies.
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NRIs can invest in IPOs through their PIS account using NRE or NRO funds.
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IPOs provide portfolio diversification.
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They work on RBI and FEMA guidelines.
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Portfolio Management Services (PMS)
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Portfolio Management Services (PMS) is a type of service provided to NRIs to manage their stocks and securities in India.
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NRIs usually invest through a PMS account linked with a PIS or demat account, as per Indian regulations.
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A dedicated fund manager actively manages the portfolio to aim for better returns in changing market conditions.
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Returns are market-linked, and profits are subject to capital gains tax as per Indian tax rules for NRIs.
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PMS returns are taxed as capital gains, and investors get detailed reporting of portfolio performance and holdings.
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As per SEBI regulations, a minimum investment of ₹50 lakh is required to open a PMS account.
Why Should NRIs Invest in India?
The following are the key reasons why NRI investments in India are considered one of the best options for building wealth.
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Better Return Potential: Many NRI investments in India can give better returns than developed markets. This makes them some of the best investments for NRIs.
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Attractive Investment Opportunities: India offers multiple choices like mutual funds, real estate, and pension plans. These NRI investment options in India suit different goals and risk levels.
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Currency Advantage: NRIs earn in foreign currency and invest in Indian rupees. This helps improve returns in NRI investments in India due to favourable exchange rates.
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Strong Growth Potential: NRI investment in India offers strong growth as the Indian economy is expanding fast. It is one of the best investment options for long-term wealth creation.
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NRI Tax Benefits in India: NRIs can invest in options that offer tax advantages. This helps improve savings and keeps more returns in hand.
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Simple and Easy Process: Investing in India is now very convenient as NRE and NRO accounts can be managed online without hassle.
How Can NRIs/ OCIs/PIOs Invest In India?
By following simple steps, NRIs, OCIs, and PIOs can start their investment journey in India:
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Step 1: Residential Status
Your status as an NRI, OCI, or PIO should be confirmed. This is important to begin NRI investment in India and access legal investment routes.
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Step 2: Open Bank Account
Open an NRE or NRO account in India.
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Step 3: Complete KYC
Finish KYC verification with passport, visa, and overseas address proof for investing in NRI investment options in India.
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Step 4: Open Trading Setup (if required)
For stock market investment, open a PIS (Portfolio Investment Scheme) account through a bank if you want to invest in shares.
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Step 5: Select Investment Option
Choose from mutual funds, fixed deposits, real estate, ULIP, or other NRI investment options in India.
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Step 6: Start Investing
Invest online or through authorised platforms to begin NRI investment in India easily.
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Step 7: Track Investments
Keep a track on your investments regularly through online apps and stay aligned with your financial goals.
Important Tips for NRIs Investing in India 2026
NRIs, OCIs, and PIOs should follow these smart strategies to improve NRI investments in India.
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Be Clear About Your Purpose: Before starting NRI investment in India, know why you are investing, like retirement, savings, or future income. This helps you pick better NRI investment options in India.
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Have an NRE or NRO account: You need either of these bank accounts in India to start investing.
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Repatriation for NRE accounts: Money invested through an NRE account can be taken back abroad in full, including returns.
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Repatriation for NRO accounts: Money invested through an NRO account can be sent abroad, but only up to USD 1 million in a financial year (April–March).
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Smart Investment: Choose tax-free investment options for NRIs in India and save more money for your future.
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Stay Updated: Be updated on the RBI and FEMA guidelines to avoid compliance issues.
Documents Required for NRIs to Invest in India 2026
To invest in India as an NRI, you must have the following documents:
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NRI status proof (as per Government of India rules)
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Valid passport
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Valid visa/residence permit
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NRE or NRO bank account in India
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PAN (mandatory)
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PAN declaration form (if PAN not available)
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Basic KYC documents (as required by the institution)
*Some investments may need extra documents based on product type. Check specific requirements with your bank or advisor before investing
NRI Tax Benefits in India
The following are the latest rules on NRI tax benefits in India for the best investment options in India:
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Residential Status:
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Tax in India depends only on residential status under the Income Tax Act, 1961.
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Income earned or received in India is taxable.
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Foreign income is not taxable.
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Taxable Income for NRIs:
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Salaries, rent, capital gains, etc. are taxable.
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Interest earned from NRO accounts is taxable.
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Interest earned from NRE and FCNR accounts is tax-free.
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Capital Gains Tax:
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Short-Term Capital Gains (STCG)
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For Equity shares and mutual funds, gains are taxed at 20% tax under Section 111A.
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For other assets, tax is as per the income tax slab
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Long-Term Capital Gains (LTCG)
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For Equity shares and mutual funds, gains are taxed at 12.5% tax
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An exemption of up to ₹1.25 lakh per financial year is available
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Any gains exceeding ₹1.25 lakh are taxed at 12.5%
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Other Assets (Property, Debt, Gold etc.)
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Short Term Capital Gains are taxed as per the income tax slab
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Long Term Capital Gains are taxed at 12.5% or 20%, depending on the asset type and rules.
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TDS for NRIs:
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TDS is deducted on rent, interest, dividends, and capital gains.
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Rates are usually higher for NRIs than residents.
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Excess TDS can be claimed back while e-filing the Income Tax Returns (ITR).
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Double Taxation Avoidance Agreement (DTAA):
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Filing of ITR:
Common Mistakes to Avoid while NRI Investments in India
Understanding the following commonly made mistakes can help improve your NRI investment in India planning and protect your returns.
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Ignoring tax rules: Not understanding taxes on NRI investment in India can reduce your overall returns.
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Wrong residential status: Not checking your NRI status correctly can lead to tax and legal problems in NRI investment in India.
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No diversification: Investing in only one option increases risk. A mix of NRI investment options in India is safer.
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Using wrong bank accounts: Using non-NRE/NRO accounts can create transaction and compliance problems.
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Ignoring currency risk: Exchange rate changes can affect the final returns from your NRI investments in India.
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Skipping tax filing: ITR filing is very important to avoid legal issues.
Why Choose Policybazaar for NRI Investment Plans in India?
Policybazaar is a trusted platform that simplifies NRI investment plans in India for NRIs, OCIs, and PIOs with transparency and full support.
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Over 9 lakh customers have invested nearly ₹12,400 crore, showing strong trust in NRI investment in India.
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No hidden charges. All costs and benefits are clearly shown for easy understanding.
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Dedicated NRI advisors guide you to choose the right NRI investment options in India based on your goals.
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It is an IRDAI-compliant platform, hence ensuring safety.
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Calls are recorded to keep transparency and build customer trust.
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Complete end-to-end support is offered.
Conclude!
NRI investment plans in India are designed to offer both safety and growth. They allow NRIs to invest in India and build long-term wealth for their retirement. With careful selection, financial goals can be achieved easily.
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