As India prepares for its 2026 Union Budget, Non-Resident Indians (NRIs) are keenly watching for policies that will impact their investments, particularly in real estate. NRIs view Indian property as a stable and often lucrative investment, and the sector’s health is intrinsically linked to broader economic growth, job creation, and infrastructure development. Experts are urging the government to prioritize measures that enhance housing affordability and maintain long-term stability in the market.
The upcoming budget is expected to focus on sustaining current momentum rather than introducing sweeping changes. While significant tax cuts are unlikely, stakeholders are hoping for continued support for key sectors and a clear fiscal path. Several key areas are on the wishlist of NRIs, ranging from streamlined customs regulations to improved trade execution and increased investment in technology.
Making Indian Real Estate More Accessible
The demand for Indian real estate from NRIs remains strong, but affordability remains a significant barrier for many. Industry leaders are advocating for the extension and expansion of the Credit Linked Subsidy Scheme (CLSS), which provides financial assistance to first-time homebuyers. Pradeep Aggarwal, Founder and Chairman of Signature Global, emphasized the potential of the housing sector, stating it could contribute up to 15 percent to India’s GDP by 2047.
Additionally, fresh incentives for first-time buyers and easier access to funding are being requested. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, highlighted the importance of infrastructure development alongside policy stability and regulatory clarity to further boost the sector. These measures are seen as crucial for unlocking the full potential of the Indian housing market and attracting continued NRI investment.
Fiscal Stability and Debt Management
Market analysts do not anticipate major tax revisions in the upcoming budget. Vijay Valecha, CIO at Century Financial, noted that previous tax relief was granted in 2025, leading to a cautious approach regarding consumption-led investments. Instead, the focus is expected to shift towards public debt targeting, enhancing fiscal transparency and credibility.
Aliasgar Tambawala, Co-CIO at Klay Group, predicts modest fiscal consolidation with a clear plan to reduce the debt-to-GDP ratio. This emphasis on fiscal prudence is intended to reinforce investor confidence and create a more stable economic environment.
Addressing NRI Concerns: Customs and Trade
NRIs, particularly those based in the UAE, are calling for reforms to customs regulations, specifically concerning gold imports. Dr. Sahitya K. Chaturvedi, Secretary General of the Indian Business & Professional Council Dubai, argues that current value-based duty-free allowances are impractical due to volatile gold prices, leading to disputes. A shift to quantity-based allowances – 30 grams for NRI passengers and 10 grams for Indian tourists – is proposed to provide clarity and fairness.
Beyond gold, there’s a push to improve the execution of existing trade agreements. While India has signed numerous deals, Dr. Chaturvedi points out that on-ground implementation lags behind countries like the UAE. A robust export-import framework, export incentives, and support for global manufacturing hubs are needed to translate trade potential into tangible results.
Investing in Future Growth: Technology and Skills
The budget is also seen as an opportunity to invest in technology and human capital development. India’s Global Capability Centres and emerging tech sectors require a skilled workforce and responsible governance. Capital expenditure should prioritize infrastructure, renewable energy, and urban housing to attract private investment and enhance competitiveness.
Responsible AI and data governance are considered critical for maintaining trust and attracting further investment. Streamlined compliance, targeted innovation incentives, and rationalized customs exemptions for NRIs are also being advocated to encourage reverse migration and diaspora engagement. These measures are intended to position India as a global leader in technology and innovation.
The 2026 Union Budget is expected to be finalized and presented to Parliament in February 2026. The extent to which the government addresses the concerns raised by NRIs and industry stakeholders remains to be seen. Key indicators to watch will include the details of any extension to the CLSS, changes to customs regulations, and the allocation of funds towards infrastructure and technology development. The budget’s impact on real estate and overall economic growth will be closely monitored in the months following its release.
