The India Union Budget for 2026–27 is expected to be presented in the Indian Parliament on February 1, 2026. In recent years, Non-Resident Indians (NRIs) have expressed strong disappointment with successive budget proposals, as many of their long-standing demands have remained unaddressed.
According to the Ministry of External Affairs (MEA), as of the end of November 2024, there were approximately 35.4 million Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) living outside India, making the Indian diaspora the largest overseas community in the world. In 2024-25, the diaspora sent $135.45 billion to India in the form of inward remittances, providing major support to the Indian economy.
Approximately 9 million Indians reside in the Gulf Cooperation Council (GCC) countries, the majority of whom are blue-collar workers or belong to the middle-income group. These segments remit a significant portion of their earnings to India to support their families. Their key demands include a decent pension scheme, comprehensive medical insurance, assistance for the education and marriage of their children; and a resettlement package to enable a dignified life after repatriation to India.
Although the Central Government has introduced several welfare schemes for overseas Indians, the reality is that many of these benefits do not reach the intended beneficiaries. This gap can be attributed to multiple factors, including a lack of awareness about existing schemes and inadequate access to application and facilitation mechanisms.
Low-income migrant workers have consistently demanded that all such welfare schemes be brought under a single nodal agency and administered through a unified platform. Greater digitalisation of processes, enhanced outreach through social media and simplified application procedures would significantly improve access and uptake.
As the Union Budget approaches, the overseas Indian community expects the government to announce a more comprehensive and inclusive social security framework that effectively addresses their long-standing concerns.
Fairer and clearer tax provisions are urgently needed, particularly for low-income Non-Resident Indians (NRIs). The current Tax Deducted at Source (TDS) rate of 30 per cent plus surcharge on domestic income earned by NRIs, irrespective of the amount, requires serious reconsideration.
For instance, an NRI earning as little as ₹1,000 as interest in his NRO account is subjected to a TDS of ₹312. To get this amount back, the NRI is compelled to file an income-tax return. This process itself is burdensome, as NRIs are required to file returns using Form ITR-2, which is complex and difficult for many. A simplified return form, similar to ITR-1 for residents, should be introduced for such cases.
Further, the disparity in tax slabs between residents and NRIs is inequitable. While resident Indians enjoy a tax-free income threshold of up to ₹12 lakh, NRIs are taxed on domestic income beyond ₹4 lakh. Similar discrimination exists in areas such as capital gains taxation and other incomes, which need to be rationalised to ensure fairness and parity. A more clearer guidelines are needed on Residency Rules which has got direct impact on the taxation.
Another pressing concern is the excessive airfare charged by airlines during vacation and festival seasons. Despite this issue being repeatedly brought to the attention of the authorities, no effective relief has been provided so far. The steep and often unreasonable fare hikes place an undue financial burden on NRIs and their families visiting India during these periods and demand urgent regulatory intervention.
NRIs are currently excluded from several popular long-term small savings schemes of the Government, which is discriminatory. These include the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY), a scheme intended for the welfare of girl children. NRIs are also not permitted to invest in the Sovereign Gold Bond Scheme (SGB). If these restrictions arise from the provisions of the Foreign Exchange Management Act (FEMA), suitable amendments may be considered to ensure that these schemes are made equally accessible to NRIs.
The above lists are not exhaustive. Tax concessions, incentives and investor-friendly policy announcements can attract increased capital flows into the country. While the genuine concerns of low-income groups must be addressed, the needs of the investor community also deserve due attention, particularly at a time when the Indian economy is facing challenges arising from tariff-related issues.
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