The Indian government has announced a series of measures to attract foreign investments, including easier investment norms for foreign individuals in Indian equities and tax-free income on government securities.
The Union finance ministry said the move is in line with the government’s commitment to strengthen India’s position as a leading global investment destination and deepen capital markets.
The government has increased the investment limit for an individual Person Resident Outside India (PROI) under the scheme from 5% to 10% in any company, while the overall investment limit for all individual PROIs has been raised from the existing 10% to 24%.
Individual PROIs will now be permitted to invest in equity instruments of listed Indian companies through the portfolio investment scheme, which was earlier available only to non-resident Indians (NRIs) and overseas citizens of India (OCIs).
The government has also eased the regulatory framework governing FPI investments in government securities, removing the short-term investment limit, concentration limit and security-wise limit for FPI investments in government securities under the general route.
Investments by FPIs in government securities will be exempt from income tax on both interest income and capital gains, effective from April 1, 2026.
The measures are aimed at improving ease of investment for individual PROIs and FPIs, while attracting stable long-term foreign capital flows.
