Monthly Income Investments for NRIs in India

Owing to robust economic growth, technology advancement, and structural reforms, India is one of the most attractive investment destinations for investors. In this, monthly income investments for NRIs are an investment type that offers them regular income in India. These investment plans are a combination of equity and debt instruments, concentrating more on debt to certify steady returns.

To help you out, in this blog, we have listed down the best investment plans for NRIs to generate monthly income in India. So read on and gather all the information.

Why NRIs Are Opting for Monthly Income from India?

Warren Buffett always said, "Do not depend on a single income; by investment, create a second source of income." Considering this, India, with its constantly growing economy in the world, is reflected not only in GDP numbers but also in the debt and capital markets have increased in depth and participation. So, one should not be surprised that many NRIs are opting for investments in India.

Another key reason for NRIs investing in India is the easy contrast in returns. Many NRIs reside in developed markets that have mature economies and fixed income yields. On the other hand, India, across multiple debt avenues, still provides higher payouts. Currently, as of December 2025, corporate bonds offer 8% to 15%, NBFC fixed deposits or small finance banks reach about 8.5% and 10-year government bonds provide around 6.5% return.

In short, India provides NRIs with better returns without the requirement of full-time involvement or constant monitoring. Further, this is why NRIs are opting for a monthly income from India. Now, moving ahead, let's know the best income investment plans for NRIs in India.

Best Monthly Income Investments for NRIs in India

Here is a list of some of the best monthly income investment plans for NRIs in India, tailored to different circumstances and financial needs, that assist you in generating stable income.

Fixed Deposits (FDs)

For conservative investors, fixed deposits remain one of the most favorable investment options. At present, the FD interest rate ranges from 6-7.50% at major Indian banks. However, the NBFCs and small finance banks provide up to 8.5% interest rate on FDs. Further, here is how the three FD variants differ for NRIs:

• Non-Resident External (NRE) Account: It is a rupee-dominated account. In this, the principal and interest amount are fully repatriable. Additionally, the interest is tax-free in India.
• Non-Resident Ordinary (NRO) Account: This account is the best for income earned in India, like dividends or rent. The fund repartition limit is restricted to $1 million per financial year, including the interest and principal amount. Additionally, 30% TDS is deducted from the interest.
• Foreign Currency Non-Resident (FCNR) Deposit: Investments are held in foreign currencies such as GBP, USD, AUD, and more. This further eliminates the risk of exchange rate. Additionally, interest from these accounts is also tax-free in India.

You can select the tenure of your FD from 7 days to 10 years, and the interest payout frequency, i.e., monthly, quarterly, half-yearly, or annually. Additionally, from bank to bank, the interest rates vary and depend on the currency, tenure, and account type. In short, for people who like security backed by a bank against market fluctuations, FDs are a good investment option.

Government and Corporate Bonds

Government bonds are debt instruments issued by the central or state government to fund several public expenditures and projects. They pay a fixed rate of interest to investors, generally semi-annually or annually. Additionally, at maturity, the principal amount is paid. Government securities in India are stated as the safest debt securities. As per your choice, you can opt for both short-term and long-term securities like treasury bills.

Apart from this, many investment-grade corporate bonds provide annual 8% to 15% returns. So, if you like predictability, then Indian bonds are one of the safest ways to have a stable and fixed income.

Real Estate and REITs

Apart from paper assets, if you want something tangible, then the property and infrastructure sector of India has again gained the spotlight. In the financial year 2025, the real estate sector of India rose to INR 23,080 crores. It is the best in seven years. With rental yields of 2% to residential, 4% and commercial sectors of 6 to 9% the real estate has regained the confidence of investors.

For those who like a hands-off approach, real estate investment trusts (REITs) provide exposure to malls and office spaces, paying quarterly dividend-like distributions. Further, through an Indian demat account, you can hold them, and under RBI norms, you can repatriate them.

Mutual Funds

As of October 2025, the mutual fund industry of India now manages over INR 79.79 lakh crore. It is nearly triple what the industry did 5 years ago. This showcases both accessibility and trust. Further, as an NRI, you can opt for:

• Hybrid or balanced funds for combining income and growth.
• Debt funds for regular interest and stability.
• Equity and flexi-cap funds for higher long-term potential.

Additionally, many mutual fund houses also provide Systematic Withdrawal Plans (SWP) that work like a "monthly income" setup from your accumulated corpus.

National Pension System (NPS)

NRIs through NRE/NRO accounts can invest in the National Pension Scheme (Tier-I and Tier-II). Over the long term, with potential annual income returns between 6 to 10%, contributions are invested in a mix of government equity or corporate bonds.

At the age of 60, up to 60% of the corpus has no tax imposed, while the remaining is used to purchase an annuity offering monthly pension income. Also under section 80C (INR 1,50,000) and section 80CCD (INR 50,000) of the Income Tax Act, 1961, you can qualify for a tax deduction for your NPS account contribution.

So, these were some of the best monthly income investment options available for NRIs in India. You can choose any of them or multiple as per your financial goals. Moving further, now, let's know the key tax and regulatory rules that NRIs need to follow while investing in India.

Key Tax and Regulatory Rules for NRIs

The key tax and regulatory rules for NRIs are as follows:

These were the key taxation and regulatory rules that NRIs need to follow while investing in the Indian market.

Final Thoughts

Lastly, monthly income investments for NRIs in India are a good option to generate wealth and have savings for their future. Considering this, there are several investment options available for them to earn a monthly income in India. However, while choosing any, you should consider your financial goals, risk profile, currency fluctuations, and tax implications.

Further, if you are facing issues in selecting the right monthly income investments, connect with Savetaxs. Our financial experts will guide you in the selection process and help you with your investments.