VVested

Market guide

Investing in India

For a global investor looking in, India has two doors: the FPI route into mainland NSE/BSE, or the IFSC at GIFT City — with very different tax and access trade-offs.

Market cap:~$4.8–5.0T (NSE + BSE, Q1 2026)Currency:INRRegulator:SEBI

01 — Market overview

The shape of the market

Exchanges

  • NSE
  • BSE

Headline indices

  • Nifty 50
  • BSE Sensex
  • Nifty Bank

Top sectors

  • Financials
  • Information technology
  • Consumer / Energy

Currency

  • INR

Regulator

  • SEBI (Securities and Exchange Board of India); RBI for FX

Market capitalization

  • ~$4.8–5.0T (NSE + BSE, Q1 2026)

02 — Ways to invest

What you can actually buy

A non-exhaustive inventory of instruments available in this market — stocks, ETFs, ADRs, REITs, bonds — with notes on access.

Stocks
Foreign retail accesses primarily via the FPI route or via GIFT City IFSC. NRIs use the Portfolio Investment Scheme (PIS) account.
ETFs
Growing ETF market (~$80B+ AUM); Nippon, ICICI Pru, SBI dominate. Nifty 50 / Next 50 / sectoral ETFs are core.
Mutual funds
~$700B+ MF industry. NRIs can invest (some AMCs restrict US/Canada residents); non-NRI foreigners cannot.
ADRs / DRs
Indian ADRs in the US (INFY, WIT, HDB, IBN) and GDRs in London give offshore exposure.
REITs
Listed REIT market is nascent — Embassy, Mindspace, Brookfield India, Nexus Select Trust.
Bonds
FPI Fully Accessible Route (FAR) for G-Secs; Indian govt bonds included in JPMorgan EM bond index since 2024.

03 — Access & brokers

How a foreign retail investor gets in

Brokers that serve non-residents

  • GIFT-City-based FPI service providers (HSBC, StanChart — institutional)
  • ICICI Direct / HDFC Securities (NRI PIS accounts)
  • Zerodha / Groww / Upstox (residents and NRIs via PIS)

Choosing a platform? Compare Vested, INDmoney, IBKR & Rovia →

KYC & onboarding

FPIs register under Category I / II via a Designated Depository Participant. NRIs use NRE/NRO + PIS account.

Notable restrictions

Non-NRI foreign retail cannot directly buy Indian-listed stocks — must come via FPI vehicle or via NSE IFSC (GIFT City) products.

04 — Tax & regulatory

What gets taxed, by whom

Headline tax treatment for foreign retail investors. Specific situations — large holdings, real-estate-rich entities, treaty residency — can diverge. Always confirm with a qualified advisor.

Capital gains

Listed equity: 12.5% LTCG (over Rs 1.25L) and 20% STCG from FY24-25; same for FPIs unless treaty-protected. Unlisted: 12.5% LTCG (2-yr holding).

Dividend withholding

20% statutory for non-residents (plus surcharge / cess); treaty rates typically 5–15%.

India DTAA

N/A — India is the source country here. Inbound investors apply their home-country treaty with India.

05 — For Indian residents

The India-specific angle

What changes when you're investing from India — LRS eligibility, Indian feeder-fund options, and the tax / reporting gotchas you should know upfront.

LRS not applicable here

Indian residents invest in this market directly — LRS governs outbound remittance, not domestic investing.

Indian feeder options

N/A — Indian residents invest in Indian equities directly; LRS governs outbound, not domestic.

Caveat / pitfall

If you're a foreign investor reading this: GIFT City IFSC offers a capital-gains exemption for non-residents on IFSC-listed securities, which is the cleanest tax route into Indian assets.

06 — Drill down

Pillar guides on India

Four deep-dives we're writing on how to actually execute in India. Each becomes a full article at /india/[slug].

07 — Tools

Related calculators

Free Vested calculators relevant when you're investing in India.

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