Dinesh Sharma: How non-resident Indians are inspiring growth at home

Two decades ago, the financial connection between Non-Resident Indians (NRIs) and their homeland was largely about supporting family needs. Most remittances went toward covering everyday expenses, funding education, or paying for healthcare.

Fast forward to today, and the narrative has evolved dramatically. In 2025, NRIs sent a staggering $130 billion in remittances, making India the largest recipient of such inflows globally.

Today, NRIs are not just sending money home—they are investing in India’s growth story. From real estate and equities to alternative investments, the financial landscape for NRIs is seeing a change. India, with its robust economic fundamentals, pro-growth reforms, and burgeoning middle class, offers a compelling investment destination for those looking to align their wealth with the country’s growth trajectory.

India is currently the fastest-growing major economy, with a GDP growth rate of 6-7%. The country’s GDP stands at approximately $4.3 trillion and is on track to reach $5 trillion by 2027, which will make it the third-largest economy globally. This growth is underpinned by several structural reforms, including the Production Linked Incentives (PLI) scheme, Goods and Services Tax (GST), and the Insolvency and Bankruptcy Code (IBC). Additionally, the judicious deployment of Digital Public Infrastructure has strengthened the economy’s foundation, making it more transparent and efficient.

India’s demographic dividend is another key driver of its economic resilience. By 2030, 69% of the population will be of working age, fueling consumption and innovation. The rapid growth of the formal white-collar workforce is also creating a robust middle class, further boosting domestic demand.

India’s capital markets are among the top five globally in terms of liquidity and depth. Domestic institutional participation is scaling up. This makes India’s financial markets a stable and attractive option for long-term investors, including NRIs.

One of the most exciting developments for NRIs is the emergence of GIFT City (Gujarat International Finance Tec-City) as a global financial hub. GIFT City offers a range of investment opportunities all within a regulatory framework designed to attract global capital. For NRIs, this is a game-changer, providing a seamless platform to invest in India while enjoying tax benefits and ease of compliance.

Real estate has always been a preferred asset class for NRIs, driven by both emotional ties and financial returns. India’s real estate market is witnessing a resurgence, supported by regulatory improvements, increased transparency, and the rise of affordable housing. For NRIs, real estate offers a dual advantage: it serves as a tangible asset that connects them to their roots while also providing attractive returns. The introduction of Real Estate Investment Trusts (REITs) has further democratized access to this asset class, allowing investors to participate in the growth of commercial real estate without the need for large capital outlays.

Indian equities continue to attract significant NRI capital through Portfolio Investment Schemes (PIS). The country’s stock markets are not only liquid but also offer a diverse range of investment opportunities across sectors like technology, healthcare, and renewable energy. Beyond traditional asset classes, NRIs are increasingly exploring alternative investments such as private equity, venture capital, and structured products. While still nascent in India, the alternative investment market has grown significantly over the past few years, driven by a robust regulatory framework and the rise of India’s start-up ecosystem.

India has made significant strides in enhancing its regulatory framework, digital infrastructure, and ease of doing business. These advancements have bolstered investor confidence and created a more transparent investment landscape.

For example, NRIs investing through GIFT City could get advantage of tax benefits, such as zero or reduced taxes on capital gains and income, exemptions from the Securities Transaction Tax, and seamless foreign currency repatriation. However, these advantages depend on the chosen investment vehicle and the investor's treaty residence, making tax alignment a critical consideration.

In addition, regulators are actively exploring ways to streamline the Know Your Customer (KYC) process by introducing remote, paperless verification. Currently in the draft phase, this regulation aims to enable NRIs to complete their identity verification digitally, eliminating the need for physical visits to India. The aim is to establish a seamless and secure KYC framework, thereby encouraging greater participation of NRIs in the securities market.

By adopting a more strategic and diversified approach to wealth management, NRIs are not merely adapting to change—they are driving it. India’s growth story is one of resilience, innovation, and opportunity. For NRIs, this is not just an invitation to invest but a chance to be part of a transformative journey. By aligning their wealth with India’s economic trajectory, NRIs can secure their financial futures while contributing to the country’s global standing. The time to act is now. For NRIs, the opportunity to redefine wealth management and lead the way in financial innovation has never been greater.