How NRIs fuel India's economic growth with strategic investments

Two decades ago, the financial connection between non-resident Indians (NRIs) and their homeland was largely about supporting family needs. Most remittances went towards everyday expenses, education, or healthcare. Fast forward to today, and the narrative has shifted meaningfully. In 2025, NRIs sent an estimated $130 billion (Dh478bn) in remittances, making India the largest recipient globally.

More importantly, NRIs are no longer just sending money home — they are investing in India’s growth story. From real estate and equities to alternative investments, the financial engagement of NRIs has evolved alongside India’s economy. With strong economic fundamentals, pro-growth reforms, and a rapidly expanding middle class, India presents a compelling opportunity for NRIs looking to align their wealth with the country’s long-term trajectory.

India’s economic resilience: A magnet for NRI investments

India remains the fastest-growing major economy, with GDP growth of 6–7 per cent. Its economy, currently valued at approximately $4.3 trillion, is on track to reach $5 trillion by 2027, positioning India as the world’s third-largest economy. This momentum is supported by structural reforms such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Production Linked Incentives (PLI) scheme. The widespread adoption of Digital Public Infrastructure has further strengthened transparency, efficiency, and financial inclusion.

Demographics are another powerful tailwind. By 2030, nearly 69 per cent of India’s population will be of working age, driving consumption, innovation, and productivity. The expansion of the formal white-collar workforce is steadily strengthening the middle class and boosting domestic demand. India’s capital markets are now among the top five globally in terms of liquidity and depth. Rising participation from domestic institutional investors has added stability, making Indian markets increasingly attractive for long-term investors, including NRIs.

GIFT City: A gateway for global investors

One of the most significant developments for NRIs is the rise of Gujarat International Finance Tec-City (GIFT City) as an international financial hub. Designed to attract global capital, GIFT City offers access to a wide range of investment opportunities within a globally aligned regulatory framework. For NRIs, it provides a streamlined platform to invest in India while benefiting from simplified compliance and potential tax efficiencies.

Real estate: A timeless favourite

Real estate continues to be a preferred asset class for NRIs, driven by emotional connections as well as financial returns. India’s real estate sector is seeing renewed momentum, supported by regulatory reforms, improved transparency, and the growth of affordable housing. The introduction of Real Estate Investment Trusts (REITs) has further broadened access, allowing NRIs to participate in commercial real estate without large capital commitments.

Equities and alternatives: The new frontier

Indian equities remain a key destination for NRI capital through Portfolio Investment Schemes. The market offers diverse exposure across sectors such as technology, healthcare, and renewable energy. Beyond traditional investments, NRIs are increasingly exploring alternatives like private equity, venture capital, and structured products. While still developing, India’s alternative investment ecosystem has expanded rapidly, supported by regulation and a thriving start-up landscape.

Tax efficiency and regulatory ease

India has made notable progress in improving regulatory clarity, digital infrastructure, and ease of doing business. Initiatives such as proposed remote, paperless KYC aim to simplify market access for NRIs by enabling digital verification without the need for physical presence in India.

The time to act is now

By taking a strategic and diversified approach to wealth management, NRIs are not just adapting to India’s growth — they are helping shape it. Aligning wealth with India’s economic journey allows NRIs to secure their financial futures while contributing to the country’s global ascent. The opportunity to participate in this transformation has never been more compelling.