For many non-resident Indians (NRIs), India remains the default investment destination — driven by familiarity, growth optimism and emotional comfort. However, if retirement is planned overseas, portfolio strategy needs to reflect this reality, opined experts.
Undoubtedly, India remains one of the fastest-growing major economies, with GDP expected to grow at 7.4% in FY26, according to the government’s latest economic survey tabled in the Parliament last month.
The survey also pointed out that India continued to be the largest recipient of remittances, with receipts of $ 135.4 billion in FY25, which helped to stabilise the current account position.
While the growth case is clear, the real question for NRIs planning to retire abroad isn’t whether India is attractive — it is whether their portfolio is aligned to the currency and geography of future expenses.
Currency alignment over familiarity
Shobhit Mathur, Co-Founder, Ionic Wealth, said whether NRIs should continue investing in India, even if they plan to retire overseas, depends less on geography and more on currency alignment and long-term goals.
Currency risk is not just theoretical. The rupee has depreciated by approximately 4% in the last year alone, while on a five-year basis, the fall is over 25%.
Therefore, Atish Jain, CEO at Choice Connect, said that India can continue to serve as a long-term growth allocation, especially given its structural economic potential, but the income portion of the retirement corpus should gradually align with the country and currency where the individual plans to live.
“In simple terms, growth can be diversified, but retirement income should match future expenses.”
Analysts also advised that if the bulk of original wealth has been created in India, one must gradually build a corpus in the intended country of retirement within permissible limits.
Conversely, if capital is already allocated overseas, exposure to India should be a deliberate asset allocation decision rather than an emotional one, said Mathur.
Growth vs income: Structuring the portfolio
For investors looking to build an ideal portfolio, striking the right mix between growth assets and income assets is needed, while understanding one’s long-term goals and risk appetite.
Growth assets refer to equities globally and in the US. While income assets are debt instruments aligned to retirement geography.
As retirement approaches, the portfolio should gradually become more conservative and more currency-aligned, said Jain, adding that this transition works best when planned several years in advance rather than done abruptly.
According to Mathur, the core portfolio should be long-term, stable and aligned to retirement income needs, while the satellite portion can be more tactical and opportunistic, depending on the individual’s risk profile.
Ease of access and currency alignment during retirement often matter more than chasing marginally higher returns. Thus, Jain advises NRI investors to look at the following parameters while creating a portfolio:
- Tax treatment in both countries, including double taxation provisions
- Repatriation rules and regulatory compliance
- Currency risk at the time of withdrawals
- Liquidity and ease of accessing funds from overseas
- Healthcare costs and longevity planning in the retirement country
- Cross-border estate planning considerations
Disclaimer: This story is for information purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
