Finance Minister Nirmala Sitharaman on Sunday expanded investment opportunities in India for overseas investors, providing them with a new route to purchase Indian stocks.
Sitharaman proposed a market-making framework with suitable access to funds and derivatives on corporate bond indices. (Sansad TV)
In a bid to draw global investors to the country and enhance liquidity in the secondary market, Sitharaman proposed a market-making framework with suitable access to funds and derivatives on corporate bond indices.
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More importantly, the Finance Minister in her speech for the Union Budget 2026, said all Persons of Indian Origin (PIOs) would now be permitted to invest in equity instruments and listed Indian firms through the Portfolio Investment Scheme.
Sitharaman also proposed the increasing of the investment limit for an individual PIO from 5 per cent to 10 per cent.
Tax holiday for foreign firms providing global cloud services with Indian data centres in India
The Union Budget 2026 allows a tax holiday till 2047 for foreign companies which are providing cloud services to customers globally by using data centres in India.
“I propose providing a tax holiday until 2047 to any foreign company that offers cloud services to global customers using data centres located in India,” Sitharaman said. However, the Finance Minister said that such companies will be required to provide cloud services to Indian customers through an Indian reseller entity.
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In addition to this, Sitharaman proposed the provision of a safe harbour of 15 per cent on the cost for companies related to Indian entities operating data centers.
Foreign asset disclosure scheme
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In addition to this, Sitharaman proposed the provision of a safe harbour of 15 per cent on the cost for companies related to Indian entities operating data centers.
Foreign asset disclosure scheme
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The Finance Minister also proposed a six-month foreign asset disclosure scheme for small taxpayers including students, tech professionals and relocated NRIs during the Union Budget speech.
Sitharaman announced no interest imposed for taxpayers on the penalty amount for the period of appeal before first appellate authority, irrespective of the outcome. The Finance Minister has also announced a three-year exemption for dividend income received by notified cooperatives on investments made up to January 31, 2026.
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Home/India News/Overseas investors can now buy equities in listed Indian firms, but there's a catch
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