Best 6 Investment Opportunities for NRIs in India: Your 2025 Roadmap
Written by
| Reviewed by Abdul Latheef K
Last updated on
November 12, 2025
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We have been witnessing steady growth in the Indian economy, making its financial ecosystem more investor-friendly and offering improved investment opportunities for NRIs in India. According to the International Monetary Fund, the last decade, from 2014 to 2024, was one of the most significant periods in the Indian economy, ranging from around 6.8% to 9.2%.
This growth has attracted a considerable amount of NRI investments in the country. Despite the financial benefits, the urge to maintain monetary and emotional ties with the homeland also leads to NRI investment.
But what are the possible investment opportunities for NRIs in India? Are there any regulations or restrictions for NRI investments? Whether it be real estate, mutual funds, investments in forex, or insurance, India offers a vast array of investment schemes for NRIs.
In this article, we will dive into the details of these investments, the things to consider before initiating your NRI investment, and the mistakes to avoid while investing in India.
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6 Lucrative investment opportunities for NRIs in India
The Foreign Direct Investment policies in India mainly govern investments by foreign companies, though some aspects overlap with those applicable to individual NRI investors. India also offers dependable and easily accessible investment options specifically designed to meet the needs of NRIs.
In addition, these opportunities are tailored to meet the financial needs of the non-residents, whether they are Indian citizens or of Indian origin. So, from short-term or long-term financial goals and regular income to improving financial and retirement planning, the Indian NRIs have multiple investment opportunities. Some of them are:
1. Fixed Deposits
Fixed deposits (FDs) are a favoured investment choice among NRIs, particularly for individuals who prefer low-risk financial options. Moreover, fixed deposits offer a continuous and fixed income through their interest.
Various platforms like HSBC, ICICI, HDFC, and others provide multiple FD accounts like NRE FD, NRO FD, and FCNR FD accounts. While the NRE (non-resident external) FD offers a platform to invest foreign earnings in India and earn interest in Indian currency, the NRO (non-resident ordinary) FD helps save and use income from India, such as dividends, stock returns, pensions, or insurance.
On the other hand, FCNR (foreign currency non-residents) FD allows users to invest and maintain foreign currency in India. While NRE and FCNR FDs are exempt from tax in India, the interest earned from NRO FDs is taxable.
Along with benefits like tax relaxations, repatriation of principal and interest, increased interest rates, and stability in income, NRI FDs might also have certain risks, such as fluctuations in currency value and inflation.
2. Real Estate
The RBI offers provisions for NRIs to buy and invest in properties in India. A long-term income option with improved growth potential, non-residents can engage in real estate investments using NRE, NRO, and FCNR accounts.
However, there are certain restrictions and regulations for NRIs when investing in real estate. Although commercial and residential properties can be bought, the RBI restricts non-residents from the purchase of plantation properties, agricultural lands, and farmhouses in India.
Although NRI real estate investments can be managed through someone with a Power of Attorney (PoA), making transactions easier, they might have certain risk elements due to property type restrictions, market volatility, and liquidity concerns.
3. Mutual Funds
A mutual fund is a platform where several investors invest their money, and an expert or fund manager uses this money to buy different securities like bonds or stocks. According to India’s economic laws, NRIs can invest in mutual funds, making it an investment option with reduced risk elements.
However, for this, the investor should meet certain criteria. Some of them include an NRO or NRE bank account, approved NRI status by the Foreign Exchange Management Act (FEMA), and newly completed Know Your Customer (KYC) verification.
While investing in mutual funds, NRI investors can either go for a mutual fund intermediary or work with asset management companies (AMCs). If you choose an intermediary service, banks like ICICI or HSBC will be helpful. In the case of AMCs, SBI Funds Management Ltd., ICICI Prudential Asset Management Company Ltd., HDFC Asset Management Company Ltd., and others are top-listed in India.
In some cases, the existing mutual funds initiated while a resident of India might also be continued when you become an NRI by completing the KYC updates and shifting of the bank account to an NRO or NRE account. However, AMC will not allow this in the case of NRIs from Canada and the US due to regulatory restrictions.
4. National Pension Scheme
The National Pension Scheme (NPS) is another investment option that focuses on retirement savings. Along with Indian residents, NRIs can also subscribe to this plan offered by the Pension Fund Regulatory and Development Authority (PFRDA). So, NPS is a safe investment opportunity for NRIs in India.
NRIs have to meet some basic eligibility criteria to be eligible for this investment plan. This includes:
NRIs can either invest in this scheme through the official NPS website or with the help of banks offering NRI services. According to PFRDA, a minimum contribution of Rs 500 should be made by NRIs in the beginning. Moreover, investors should invest at least Rs 6000 every year until the plan matures in order to keep the account active throughout this period.
With a Tier I NPS account, withdrawals can be a bit difficult for NRIs. Full withdrawals before maturity are not allowed for NPS. However, an NRI investor can withdraw partially, up to 25%, for various needs like medical expenses, home insurance, educational expenses, and more, once they have completed three years.
5. Forex Trading
Forex, or foreign exchange, is a trading practice that helps gain profit from currency exchanges through changes in exchange rates. Unlike mutual funds, forex trading is carried out between two parties, involving brokers or broker platforms as intermediaries.
Zyvest Capital can help NRIs navigate promptly through forex investments, offering a beneficial investment opportunity.
With over 300 tradable assets, Zyvest Capital will help you learn the basics of forex, invest and manage the investments, and gain professional assistance in every activity related to forex trading.
However, as mentioned earlier, forex trading has certain restrictions in India. According to the RBI and SEBI, forex exchanges in India can only be carried out for certain currency pairs. Furthermore, the presence of counterparty risks and significant market volatility often makes forex trading riskier than many other forms of investment.
6. Pre-IPO Investment
Pre-IPO investment is another investment opportunity for NRIs in India. This is a process in which people invest in private companies that have not yet become public through an Initial Public Offering (IPO). These shares are often available at a discounted price compared to publicly listed companies.
Pre-IPO investments will help to diversify the portfolio of NRI investors, gain potential profit with high returns, and gain early access to high-growth companies. However, the risks involved in these investments are higher, as they are less liquid, have a lock-up period restricting sales, and more.
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Restrictions on NRI investors in India
We have mentioned that the NRIs have certain restrictions for investing in India. In this section, we will discuss these restrictions in detail.
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Mistakes to avoid as an NRI investor in India
Investing in India is a smart move for NRIs, as it helps grow wealth as well as maintain a connection with the homeland. However, with differences in tax rules, repatriation laws, and regulatory changes, slight negligence can cause serious challenges. So, it is important to avoid some mistakes while investing in India as an NRI. Some of them are:
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Wrapping up
So far, we have discussed various investment opportunities for NRIs in India. From fixed deposits, real estate, and the National Pension Scheme to forex trading, pre-IPO investments, and mutual funds, a wide range of investment options is readily available for NRIs, whether they are non-resident Indian citizens or of Indian origin.
However, it is important to consider various factors like risk management, personal financial goals, compliance requirements under Indian law, and more before choosing the ideal investment option.
Moreover, having a deeper understanding of restrictions and limitations under law, staying away from fraudulent offers, and avoiding impulsive investment decisions will help NRIs create a beneficial investment portfolio.
So, a little attention to detail, thoughtful planning, and detailed background study will help create long-term successful investments and financial security in the Indian investment landscape.
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Author Info
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Abdul Latheef K is a Researcher at Jawaharlal Nehru University, New Delhi. He is also an Author, Educator, and Expert in personal finance and Investment. His areas of interest comprise the Stock Market, foreign capital flows, and Open Economy Macroeconomics.
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