What are the Rules for NRI Investments in India?

DV Posted by: Dhruv Verma
• 20 September, 2025
2 Reply

The rules for NRI investments in real estate in India for NRIs are:   
 

  • A non-resident Indian can purchase any immovable property in India except agriculture and plantation lands. For this, NRIs should pay out the funds earned in India by a Non-resident account according to the FEMA guidelines or normal banking channels. 
     
  • If the payments are made through any other mode than it is not permitted. Travellers' foreign currency and cheques are not acceptable.
     
  • If any NRI has inherited plantation or agricultural land, then he or she should transfer it to the Indian residents who are permanently residing in India. If an NRI has a property apart from the plantation or agricultural land, then he or she can sell it to a person living outside India who is a person of Indian origin (PIO), an Indian citizen, or a person resident in India.
     
  • The property can be transferred in the form of a gift to an NRI or to a person residing in India or a PIO.
     
  • No citizen of Bangladesh, Bhutan, Nepal, Sri Lanka, Iran, Afghanistan, China, or Pakistan is allowed to purchase any immovable property in India. However, they can get it for a five-year lease with the permission of the Reserve Bank of India.

Tags : Rules for NRI Investments, NRI Investments in India

  • Jhanvi Menon 24 September, 2025

    Guidelines for NRI Investments in India: 

     

    • You must be an NRI and have a Permanent Account Number. 
    • You need to open a demat or trading account to start investing in stocks in India. You can open your demat account through a registered broker or Bank under PINS. 
    • You can start investing in mutual funds through your NRE/NRO accounts or with your broker, bank, and AMCs. 
    • If you invest from an NRO account, then all your investments are repatriable. 
    • If you invest through an NRO account, then you will repatriate only 1 million USD in a financial year. 

     

  • Deepa Verma 22 September, 2025

    The activities given below are excluded from the NRI Investments: 

     

    • Tea sector
    • Courier services 
    • Broadcasting
    • Print Media
    • Asset Reconstruction Companies
    • Atomic Minerals
    • Development of Integrated Township
    • Defense and strategic Industries
    • Operation and establishment of satellites
    • Retail trading
    • Agriculture and Plantation
    • Investing companies in the service sector and Infrastructure
    • Postal services
    • Gambling and Betting
    • Housing and Real estate business
    • Lottery business
    • Petroleum refining, natural gas, LNG pipelines

     

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