India is considering a move that could allow non-resident Indians and overseas citizens of India to participate in the National Pension System, according to the report. The proposal is part of a broader effort to draw more foreign capital into the country as policymakers look to widen investment avenues.
The planned changes are said to sit within a new foreign investment framework being shaped alongside recent steps by the government and the Reserve Bank of India. In addition to possible NPS access for NRIs and OCIs, the framework is expected to support direct overseas listings and offer clearer rules on how investments are classified between foreign direct investment and foreign portfolio investment.
Greater clarity on FDI-FPI treatment could help reduce uncertainty for global investors and companies navigating India’s capital rules. A more defined structure may also make it easier for businesses to plan fundraising strategies while giving overseas investors a better understanding of the channels available to them.
Taken together, the measures point to a wider policy push to make India more accessible to international capital. If approved, opening NPS to NRIs and OCIs would add another route for diaspora participation while complementing reforms aimed at modernizing the country’s investment regime.
