New Delhi: The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on Sunday, combined major social and economic initiatives, with key announcements ranging from the strengthening of mental healthcare infrastructure to expanded investment avenues for non-resident Indians (NRIs). The measures reflect the government’s twin focus on human development and capital market stability amid changing global conditions.
Addressing long-standing gaps in mental healthcare, the finance minister announced the establishment of national-level institutes dedicated exclusively to mental health. Acknowledging that India currently lacks specialized institutions of this scale, Sitharaman said new national mental health centres will be set up in Ranchi and Dispur. These institutes are expected to play a critical role in improving access to advanced mental healthcare, strengthening professional training, and promoting research in psychiatry and behavioural sciences across the country. The initiative is aimed at creating a structured national ecosystem for mental health care, aligned with rising awareness and demand for specialized services.
Alongside the social sector push, the Budget introduced significant reforms to attract overseas investment into Indian financial markets. Sitharaman announced that individuals living abroad can now invest in Indian equities through the Portfolio Investment Scheme (PIS), marking a major step towards deeper participation by NRIs and overseas Indians in domestic capital markets. This was her ninth consecutive Budget presentation under the Narendra Modi-led government.
The announcement comes at a sensitive time for Indian markets, which have witnessed sustained foreign outflows. Foreign investors reportedly withdrew nearly Rs 19 billion in 2025, followed by an additional Rs 4 billion in January 2026, amid currency volatility and comparatively higher post-tax returns available in overseas markets. Market participants had been closely watching the Budget for signals aimed at reviving durable foreign investment flows.
Under the Portfolio Investment Scheme, non-resident Indians and eligible foreign investors can buy and sell Indian stocks through specially designated bank accounts approved by the Reserve Bank of India (RBI). The scheme operates within defined regulatory limits, traditionally allowing up to 5 per cent investment per individual and 10 per cent aggregate investment per company, while ensuring compliance with RBI and market regulations. Importantly, investments made under the PIS route are fully repatriable.
Building on this framework, the finance minister announced further liberalization measures for non-resident investments. The individual investment cap for Persons Resident Outside India (PROIs) has been raised from 5 per cent to 10 per cent, while the overall investment limit for all such investors in a company has been increased from 10 per cent to 24 per cent. In addition, residents living abroad will now be allowed to invest in Indian equities through a simplified portfolio route, widening participation and easing procedural barriers.
Complementing these steps, Sitharaman proposed an allocation of Rs 5,000 crore for the City Economic Regions scheme, aimed at boosting urban-led economic growth. She also announced a comprehensive review of provisions under the Foreign Exchange Management Act (FEMA) related to non-debt instruments, signalling further regulatory fine-tuning to support investment inflows.
Taken together, the Budget’s announcements on mental health infrastructure and overseas investment reforms underline the government’s attempt to balance social priorities with economic imperatives, strengthening both human capital and financial confidence in the Indian economy.