A discussion around how difficult it is for non-resident Indians (NRIs) to invest in India has gained attention on X, after Zerodha founder and CEO Nithin Kamath raised concerns about the process. Kamath said that while many Indians living abroad are keen to invest in India, complicated paperwork and compliance rules often make the experience frustrating.
In a post on X, Kamath argued that India may be overlooking one of its biggest opportunities to attract long-term foreign capital, i.e., its own global Indian community.
Kamath said often focus on large global investors, while an important group gets less attention, i.e., the Indian diaspora.
According to him, there is a large population of NRIs who have both an emotional and financial connection to India and are interested in investing in the country’s growth story.
However, he pointed out that investing in Indian markets is not as easy as it should be for many overseas Indians.
“One thing that feels under-discussed in all the conversations about attracting foreign capital into India is the Indian diaspora,” Kamath said.
Kamath highlighted that many NRIs still face hurdles while trying to invest in India. These include opening investment accounts, completing documentation and dealing with regulatory requirements.
For many people living abroad, the process can feel slow and complicated, especially when compared with investing in markets in countries where digital onboarding is simpler.
He said reducing these difficulties could become one of the “lowest-hanging fruits” for bringing stable, long-term capital into India.
In other words, Kamath believes India already has a ready pool of investors abroad who want to participate in the country’s economic growth, but unnecessary friction is holding them back.
Kamath also urged regulators and policymakers to look more closely at the issue.
He expressed hope that the government and market regulator Sebi would think about ways to simplify rules and make it easier for NRIs to invest in Indian markets.
For a country aiming to attract more global capital, Kamath said the Indian diaspora may be the most natural place to begin.
His comments have sparked a wider discussion online, with many users agreeing that overseas Indians often face unnecessary hurdles despite their strong interest in investing back home.