Archive · 23 Jul 2025
NRIs Cautious on Indian Stock Market Despite Boom
Imagine many people from India who live abroad, called NRIs.
They have a lot of money, but they're not investing much in the Indian stock market, even though the market is doing well.
This is because it's harder for them to invest.
Things like taxes, complicated paperwork, and rules in their home countries make it difficult.
They also have to deal with extra steps like getting documents approved and higher fees.
Some countries also have strict tax rules that make investing even more challenging, which keeps NRIs from easily investing in India's stock market.
NRI participation in the Indian stock market hasn't risen significantly despite market growth.
NRI assets under custody grew, but represent less than 2% of NRI bank deposits.
Lower NRI participation is linked to procedural hurdles, taxation, and regulatory issues.
Cumbersome documentation, including notarization, complicates opening brokerage accounts.
Tax reporting and potential double taxation, along with high transaction costs, deter NRI investment.
- Who
- Non-Resident Indians (NRIs) and investors.
- What
- Limited participation of Non-Resident Indians in the Indian stock market.
- When
- Data compared from 2018-19 to May and June 2025.
- Where
- India and countries where NRIs reside.
- Why
- Due to procedural hurdles, taxation, and regulatory issues.
NRIs perspective
N/A
Investment Obstacles
NRIs perspective
Face challenges like taxation, procedural issues and regulatory hurdles.
N/A
The article does not mention alternative perspectives.
- NRI Assets (FY19)
- Rs 3,486 crore
- NRI Assets (May 2025)
- Rs 17,275.96 crore
- NRI share in MF assets (March 2019)
- 4.24%
- NRI share in MF assets (March 2025)
- 4.05%
- Domestic MF assets (FY19)
- Rs 23.8 trillion
- Domestic MF assets (June 2025)
- Rs 74.4 trillion
- Demat accounts (March 2019)
- 35.9 million
- Demat accounts (June 2025)
- Nearly 200 million
- Remittances (2024-25)
- Over $135 billion