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India's Budget Boosts NRI Investment, Tech Push & Strategic Autonomy

A US policy expert states India's budget strategically courts global capital and talent, with NRIs at the center through simplified investment rules. It makes decisive bets on future growth engines like AI and semiconductors with massive funding allocations. The rising defense budget aims to accelerate high-tech self-reliance and boost export potential. The expert concludes that a stronger, technologically advanced India aligns with US strategic interests in the Indo-Pacific.

Key Points: India Budget Courts NRI Capital, Bets Big on AI & Semiconductors

  • Eased NRI investment in equities & property
  • Rs 10,000 crore IndiaAI mission for digital infrastructure
  • Rs 40,000 crore for Semiconductor Mission 2.0
  • Rising defense outlays to boost self-reliance
2 min read

India's Budget seen boosting NRI role, tech push, says US policy expert

US expert analyzes India's budget, highlighting eased NRI investment rules, a major AI mission, and semiconductor push to boost strategic autonomy.

"As an important strategic global partner of the US, a strong India is better for the US, specifically in counterbalancing China in the Indo-Pacific. - Khanderao Kand"

Washington, Feb 2

The union budget sends a clear signal that New Delhi is actively courting global capital, talent, and strategic autonomy, with non-resident Indians placed at the center of that effort, a US-based policy expert said.

Khanderao Kand, Chief of Policy and Strategy at the Foundation for India and Indian Diaspora Studies, told IANS in an interview that the budget reflects strategic confidence at a time of global economic and geopolitical uncertainty.

Responding to a question, Kand said the budget meaningfully enables NRI participation in Indian equities by raising both individual and aggregate investment limits. That move, he said, makes direct market access simpler and more attractive.

Long-standing frictions in NRI property transactions have also been eased, he said. The changes reduce compliance burdens and unlock real estate liquidity for overseas Indians.

Khanderao said these measures together signal a cleaner and more welcoming investment framework for NRIs.

At the same time, he said India is making decisive bets on future growth engines.

He pointed to the IndiaAI push, which allocates Rs 10,000 crore for artificial intelligence, digital infrastructure, data centers, and cloud capacity. He said this positions India as a global AI deployment and scale economy.

Khanderao also highlighted the expansion of Semiconductor Mission 2.0, backed by Rs 40,000 crore in investment. He said the creation of rare earth and critical mineral corridors would strengthen supply-chain resilience in semiconductors, electric vehicles, electronics, and defense manufacturing.

Rising defense outlays to Rs 7.8 lakh crore further accelerate high-tech and strategic defense self-reliance, he said. He added that this could also support India's emergence as a global defense manufacturing and export player.

Underscoring that the Budget 2026 reflects a confident and forward-looking strategy, Kand said it enables stronger and cleaner investment channels for NRIs while laying the foundations of a technologically advanced and self-reliant India.

Khanderao said a stronger India also aligns with US strategic interests. "As an important strategic global partner of the US, a strong India is better for the US, specifically in counterbalancing China in the Indo-Pacific," he said.

- IANS

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Reader Comments

P
Priya S
The focus on AI and semiconductors is crucial for our future. But I hope the Rs 10,000 crore for IndiaAI is spent wisely on real research and talent development, not just on importing technology. We need to build our own IP.
R
Rohit P
Finally! The property transaction rules for NRIs were a nightmare. My uncle in the US has been trying to sell his flat in Pune for two years due to paperwork. If this eases compliance, it's a huge relief for families abroad.
S
Sarah B
As someone who follows tech policy, the scale of investment in semiconductors and rare earths is impressive. Building supply-chain resilience is key. Hope it creates high-quality jobs here and reduces our dependency on imports.
V
Vikram M
The defense budget increase is necessary, but I have a respectful criticism. We must ensure transparency in these massive outlays. Self-reliance is good, but it should not come at the cost of accountability. The money must be used efficiently.
K
Karthik V
Good to see a long-term vision. Courting NRI capital and betting on tech is the right direction. However, the benefits of this "strategic confidence" must trickle down to the common man. Inflation and rural distress also need urgent attention.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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