Business Opportunities for NRI in India

Last Updated at: Dec 10, 2020
Business Opportunities for NRI in India
The Finance Bill 2020 brought in a new monetary threshold for taxing the India income of non-resident Indians (NRIs). The Budget made NRIs’ Indian income taxable if the person qualified as a resident by staying in India for 120 days or more. However, the Finance Bill has narrowed the scope of taxability to only those Indian citizens with total income exceeding Rs 15 lakh per annum.


India has witnessed significant industrial developments in the last two decades, as a result of massive technical growth. Therefore, in recent years India has been attracting large amounts of foreign direct investments, better known as FDIs. Hence, now more than ever before, Non-resident Indians are interested in investing money in India. With so many business opportunities, both online and offline, it is difficult to focus on one. So, if you are an NRI looking for investment options in India, this article is for you. Here’s a look at several business opportunities for an NRI in India.

  1. Who is a Non-Resident Indian?

  2. Why NRIs Should Invest?

  3. Business Opportunities for an NRI in India


Who is a Non-Resident Indian?

A non-resident Indian, better known as NRI is an Indian citizen who spends less than 183 days in India, within a financial year.  The normal financial year in India lasts between April 1st and March 31st of the next year. Therefore, an NRI is someone who spends at least 182 days outside India between April 1st and March 31st. While they remain, Indian citizens, they do not have to pay tax in India. Most NRIs struggle to find good business ideas for investing their hard-earned money. In this article, we will provide you with some great business ideas to invest their money.

Visit to the following link to know about FDI in India 

Why NRIs Should Invest?

  1. As a means to prepare for a good life after retirement
  2. Maintain a comfortable standard of living
  3. Get better returns for your hard-earned money
  4. Gives you a higher income to spend and save
  5. Allows you to send home more money
  6. Enables the building of financial assets
  7. Reduces the risk of unemployment or recession

Business Opportunities for NRIs in India

Fixed Deposit

  1. Fixed Deposits, better known as FDs, have been a long-standing business idea for Indians. However, now they have also begun to be a popular business idea for NRIs as well. 
  2. These are one of the safest investment opportunities you can find because banks rarely default on them. 
  3. NRIs have the option of starting an FD using their NRO, NRE or FCNR bank accounts. 
  4. The rate at which you will receive interest usually depends on the amount, bank and period of deposition. In most cases, banks and NBFCs give customers better interest rates if they deposit their money for longer terms and tenures. 
  5. Furthermore, senior citizens and super senior citizens get good interest rates, making this is a great option for senior NRIs. 
  6. Presently, the interest rate for NRE accounts varies between 6% and 7.8%. 
  7. FDs are the best option if you are risk-averse, and are looking for long-term investment plans which give average returns. 
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Public Provident Fund

  • PPfs are another great safe investment option for both Indians and NRIs.
  • Furthermore, these are government-backed schemes, and the current rate of interest for them is 8% pa. 
  • Most of such schemes will require a commitment of up to 15 years.
  • However, the maximum amount an NRI can invest in such schemes is INR 1.5 lakhs
  • Furthermore, investing in PPFs will make the user eligible to tax deductions as per Section 80C.

National Pension Scheme

  1. The NPS is another government-backed scheme that offers tax benefits.
  2. As per this scheme, the maturity amount accumulated is tax-exempt.
  3. Also, NPS schemes are as safe as FDs and PPFs.
  4. These schemes are available for NRIs between the ages of 18 and 60.
  5. Most National Pension Schemes offer rates as high as 12%.

Mutual Funds

  • Mutual funds come in between FDs and Equity with regards to risk, as these plans are of moderate risk.
  • They can promise higher returns than FDs as they invest in the stock market.
  • However, since your portfolio is managed by experts, it makes it less risky than investing in the stock market on your own.
  • Several banks provide funds and schemes to invest in. 
  • NRIs have to make use of their NRO/NRE accounts to invest in Mutual funds.
  • One restriction here is that NRIs have to invest in Indian Rupees and not in foreign currencies.
  • Go through all your options and then pick a Fund depending on your risk profile and financial goals.

We are giving an example of 7 mutual funds that houses investments from the United States –

  • Birla Sun Life Mutual Fund
  • ICICI Prudential Mutual Fund
  • DHFL Pramerica Mutual Fund
  • SBI Mutual Fund
  • UTI Mutual Fund
  • L&T Mutual Fund
  • Sundaram Mutual Fund


  1. Equity is a great business opportunity if you are up for taking some risks.
  2. They serve as a great option for aggressive investors as they promise higher profits.
  3. NRIs have the option of investing in equities as per the Portfolio Investment Scheme outlined by the Reserve Bank of India.
  4. To trade in equities, NRIs must have either an NRE or NRO bank account and their very own Demat or trading account.

Real Estate

  • Recent years have seen an explosion of the Indian real-estate scene, and this has led to it being a great business idea for NRI investment.
  • Indian cities such as Delhi, Bangalore, Pune, Mumbai, and Kochi are regarded as real-estate hubs, with land value having sky-rocketed in recent years.
  • Several NRIs feel that purchasing land or property serves as a great investment for the future.
  • You also have the option of letting this flat or house for rent to generate more income.
  • However make sure you analyze the scenario before you pick a plot or flat to invest money in, to avoid unnecessary risks. 

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