The Indian equity market has been a relatively safe haven amid various geopolitical unrest, attracting investments from both domestic and foreign investors, including non-resident Indians (NRIs).
NRI deposits in Gujarat surpassed Rs 1 lakh crore in the September quarter of the 2025 financial year (Q2 FY25), according to statistics from the State-Level Bankers’ Committee (SLBC). This was 14% more than Q2 FY 2024, going up to Rs 1.01 lakh crore from Rs 89,057 crore.
“Over the past year, NRIs have sent substantial amounts to India,” stated a senior SLBC Gujarat official. “A variety of things are responsible for this. Many NRIs consider storing funds in Indian banks to be a safe alternative as global uncertainty increases. These are frequently used to fund real estate and other industry ventures.”
“The bull run in the Indian equity markets from September to October encouraged NRIs to invest, especially through mutual funds and direct stock purchases,” he continued.
He further asserted that “there is greater confidence among NRI investors in the India growth story. There has been an upsurge in remittances into NRI accounts as a result of NRIs investigating other opportunities for wealth generation.”
Since COVID, the Indian equity market has performed well and the outlook for the Indian economy is positive, according to Vaibhav Shah, director of the Association of National Exchanges Members of India (ANMI).
“Geopolitical difficulties are the primary cause of the world’s numerous economic troubles. Because they anticipate higher returns from Indian markets, we have seen that the number of NRIs investing in Indian stock has been rising over the past several years. NRIs also make significant investments in mutual funds,” said Shah.
The falling value of the rupee in relation to other currencies, such as the US dollar, British pound, Euro or Australian dollar, is another justification given by bankers. “Due to devaluation, realisation in rupee terms is higher for the same sum in foreign currency,” a banking industry insider stated.
This is the largest increase in NRI deposits in the second quarter over the previous four financial years.
Attractive interest rates are another significant element.
“NRI depositors get interest rates of at least 6%, which has further helped the surge in NRI deposits,” according to a banker.
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