Over-glorifying NRIs? Financial advisor questions tax equity and self-reliance narrative

A sudden surge in financial and investment products tailored specifically for Non-Resident Indians (NRIs) — from GIFT City-based instruments to premium real estate offerings in Gurgaon — has triggered a wider conversation about economic priorities and fairness in India’s financial ecosystem.

Akshat Shrivastava, founder of financial education platform Wisdom Hatch, highlighted the growing gap on social media, writing on X (formerly Twitter): “Now the thing is: that NRIs get special benefits — e.g. Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) fixed deposits are TAX FREE, while resident Indians are taxed on all their fixed deposit interest at slab.”

He noted that the shift toward NRI-focused products is driven by spending power. “More products are being built for NRIs. This is where spending power is now,” he said, while cautioning against the narrative that India doesn't need Foreign Institutional Investors (FIIs) or Foreign Direct Investment (FDI).

“Nothing wrong with building for NRIs. What is wrong is the narrative: ‘We don't need FIIs/FDIs’. ‘Our domestic institutions will handle everything’. Okay, cool. Remove all advantages then — let's see how that goes,” Shrivastava added.

The post resonated widely, prompting mixed reactions online.

One user commented, “Yes, NRIs have benefits such as tax-free NRE/FCNR deposits, offshore investment freedom, etc. But here’s the flip side. Indian residents fund the system daily through consumption, taxation, and entrepreneurship… over-glorifying NRIs while burdening locals with taxes is not sustainable.”

Another echoed the concern, “India is increasingly building exclusive, tax-advantaged products for NRIs… While this strategy makes business sense, it contradicts the domestic narrative of self-reliance and no need for foreign capital. India will truly thrive when residents and NRIs are partners, not when one is privileged at the other’s expense.”