India Investment Eligibility Checker: Complete Guide
Everything you need to know, with real numbers and specific rules cited.
You are an NRI sitting in the US, watching Indian markets rally, and wondering: can I still invest? The short answer is yes, but with guardrails. The Foreign Exchange Management Act (FEMA), 1999, along with SEBI and RBI regulations, governs what NRIs can and cannot buy in India. FEMA Section 6(3) read with the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 lays out the complete framework. Most asset classes are open to NRIs: stocks, mutual funds, real estate (residential and commercial), fixed deposits, NPS, and government bonds. But agricultural land, plantation property, and farmhouses are explicitly prohibited under FEMA Section 6(3)(i). And just because you can invest does not mean you should. Every Indian investment you hold as a US tax resident triggers FBAR (FinCEN 114) and potentially FATCA (Form 8938) reporting. Indian mutual funds are classified as PFICs by the IRS. Real estate sales face 12.5% to 30% TDS in India before you even file your US return. The rules are knowable, but you need to check both countries before you wire money.
Key Point
FEMA governs NRI investments in India. Most asset classes are open, but agricultural land is prohibited, and every Indian investment triggers US reporting requirements (FBAR, FATCA).
Example
You are an H1B holder wanting to invest Rs 50,00,000 in India. Stocks via PIS? Allowed. Mutual funds? Allowed but PFIC trap. A farmhouse in Lonavala? Prohibited under FEMA, regardless of how much you want it.