Finance Minister Nirmala Sitharaman on Friday affirmed the government's commitment to driving the 'Reform Express' with decisive policy measures to ensure positive economic momentum amid global challenges. As per NDTV Profit, Sitharaman stated that the government is committed to further drive the 'Reform Express' with decisive policy measures to ensure positive economic momentum amidst the global challenges. This commitment comes as the Reserve Bank of India lowered its GDP forecast for FY27 to 6.6% from the 6.9% estimated in April, citing elevated energy and other commodity prices, as well as continued supply disruptions arising from the West Asia conflict.
The Union Minister for Finance and Corporate Affairs announced in the Union Budget FY 2026-27 that individual Persons Resident Outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, which was hitherto available only to NRIs/OCIs. The investment limit for an individual PROI under this scheme has been increased from 5% to 10% in any company, with an overall investment limit for all individual PROIs to 24%, from the current 10%. This expansion is expected to attract stable systematic inflow of long-term, patient foreign capital, including long-term investors such as pension funds, insurance companies, and sovereign wealth funds, while also boosting foreign exchange inflows for the country.
The government has implemented significant reforms to simplify FPI investment processes, including removing the three restrictions, viz. short-term investment limit, concentration limit and the security-wise limit for investments by Foreign Portfolio Investors (FPIs) in Government securities, while retaining the overall quantitative investment limit of 6 per cent of the outstanding stock of the Central Government securities and 2% of the State Government securities (SGSs). According to the latest government notification, the government promulgated an ordinance to amend the Income Tax Act to provide tax exemptions on interest income and capital gains arising from the sale, exchange or transfer of government securities, effective from April 1, 2026. This tax exemption will be applicable w.e.f. 01.04.2026, ensuring stable systematic inflow of durable, patient foreign capital and long-term investors such as pension funds, insurance companies, and Sovereign wealth funds.
The Startup Policy Forum (SPF), representing India's new-age companies, has submitted recommendations to the Securities and Exchange Board of India (Sebi) and the finance ministry to address operational challenges faced by non-resident Indians in completing KYC and digital onboarding processes for access to Indian financial services. According to reports from Mint, the industry body stated it is sharing these recommendations in the spirit of supporting a more seamless, accessible and fully digital onboarding framework for NRIs participating in India's financial services ecosystem.
Despite global challenges, India's economic fundamentals remain robust with real GDP estimated to grow 7.7% in FY26 (Provisional Estimates) and real GVA growing by 7.9% in FY26. As per NDTV Profit, real GDP and Real GVA have been estimated to grow by 7.8% and 7.9% respectively in Q4 of FY26. Notably, manufacturing, trade, repair, hotels, transport, communication & services related to broadcasting, storage and financial, real estate & professional services sectors have attained double-digit growth at both constant and current prices in FY26. These comprehensive reforms are expected to expand the investor base for Indian equities and Government Securities and encourage wider participation from global investors seeking exposure to one of the world's fastest-growing major economies.
