Investors’ Next Stop: India
In what marks a significant shift in India’s financial openness, Bahraini investors can now invest in Indian equities almost on the same footing as non-resident Indians which was the key highlight at the Union Budget 2026 seminar held at the Indian Embassy in Bahrain.
This development reflects a broader evolution in India’s approach to opening its financial markets, making it easier for both direct investment in Indian stocks and indirect participation through Indian ETFs (exchange-traded funds) listed in the US. This positions India as increasingly accessible not only to regional participants but also to global investors seeking a stake in its growth story.
Highlights
India’s USD 4.13 trillion economy is projected to grow 7.4% and that the budget aims to position India as a trusted global investment destination, said H.E Vinod K Jacob, Ambassador of India to the Kingdom of Bahrain.
Building on India’s strong fiscal discipline and responsible government spending, budget highlights that one of the most significant changes is easier access to the capital markets. One of the most significant announcements for non-Indian investors is the simplification of the Portfolio Investment Scheme (PIS).
Previously, non-Indians needed to obtain a Foreign Portfolio Investor (FPI) license, which involved higher compliance and longer processing times. Not to forget the slightly higher costs. “Under the new rules, it’s way easier for a non- Indian resident to invest into the Indian equity market. So now a local Bahraini individual is to a great extent at par with an Indian residing in Bahrain, in terms of the manner in which he can get access to the Indian capital market, which was not the case before.” said Mr. Ihab Dalwai, Bahrain Senior Fund Manager at ICICI speaking at the session. In short, a local Bahraini can now invest in Indian equities almost at par with non-resident Indians.
For those who want an easier option, they can always invest indirectly through Indian ETFs (exchange traded funds) listed in the US, which lets them benefit from India’s growth without opening an Indian bank account or worrying about currency changes.
Sectors in Focus
India’s Union Budget 2026 targets growth and development across seven key manufacturing sectors - biopharmaceuticals, semiconductors, rare earth metals, chemicals, capital goods, container manufacturing, and textiles. Infrastructure investment will strengthen highways, railways, metros, shipbuilding, and urban development.
The energy sector is supported through clean energy initiatives, while technology and AI receive a boost through cloud data centers and digital capacity-building, including tax holidays until 2047 for foreign cloud firms operating data centers in India. The Budget also plans to redesign banking architecture to support this growth, offering extended tax holidays for offshore banking units and treasury centers in GIFT City for the next 20 years, after which they will be taxed at 15%.
Addressing the crowd at the session, former Minister of Labor and Social Affairs, H.E. Mr. Abdulnabi Al Shaywa said, ‘The real opportunities, the real growth, the real future is next door – it is in India.’ World can’t agree more with this sentiment with Budget 2026 opening new avenues for investors, including in Bahrain. Once limited in access, non-Indian residents can now explore opportunities as the India–GCC Free Trade Agreement and reformed taxes create a stable, welcoming environment for global participation in India’s growth story.
The session, hosted by the Indian Embassy, brought together experts and business leaders, including Mr. Madhu Ramankutty, Country Head, State Bank of India; Mr. Ihab Dalwai, Bahrain Senior Fund Manager at ICICI; and Mr. Abdulrahman Juma, Chairman of Bahrain India Society.
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