📉 1. The High-Yield Spectrum for 2026
For NRIs looking to earn fixed returns in Rupees or Dollars, here is the current landscape:
| Asset Class | Expected Yield (2026) | Risk Level | Repatriability |
| Corporate NCDs (AA/AAA) | 8.5% – 10.5% | Moderate | Fully Repatriable (via NRE) |
| G-Secs (Govt. Bonds) | 7.0% – 7.5% | Very Low | Fully Repatriable |
| GIFT City USD FDs | 4.5% – 5.2% (USD) | Low | Offshore / Frictionless |
| Structured Credit (AIF) | 12% – 16% | High | Fully Repatriable |
🏛️ 2. Top Debt Investment Pillars
Corporate Non-Convertible Debentures (NCDs)
NCDs are long-term debt instruments issued by reputed Indian companies (like Tata Capital, HDFC, or Mahindra Finance).
- The Yield Gap: In 2026, AA-rated NCDs are offering a 1.5% – 2% spread over traditional bank FDs.
- Secondary Market: You can buy and sell these on the exchange through your NRE/NRO Demat account, providing liquidity when you need it.
Government Securities (G-Secs) & T-Bills
Previously reserved for institutional players, NRIs can now easily buy G-Secs via the RBI Retail Direct portal or modern fintech apps.
- Sovereign Safety: Zero default risk.
- Long-Term Lock-in: Ideal for building a “Wapsi” corpus where you want to lock in current high interest rates for 10-30 years.
Alternative Investment Funds (AIF – Category II)
For high-net-worth NRIs, specialized Private Credit AIFs provide access to debt deals typically reserved for banks.
- Structured Returns: These funds invest in real estate debt, venture debt, or distressed assets, aiming for “Equity-like returns” with “Debt-like seniority.”
⚖️ 3. Tax Efficiency for Fixed Income (FY 2025-26)
Taxation is the single biggest factor in your “Real Return.”
- NRE/FCNR Interest: Remain 100% Tax-Free in India. This is the gold standard for NRI fixed income.
- NRO Interest & Corporate Debt: Taxed at your applicable slab rate. However, you can use DTAA (Double Taxation Avoidance Agreement) to claim a tax credit in your home country and potentially lower the Indian TDS (standard 30% for NRO) to 12.5% or 15% depending on the treaty.
- Capital Gains on Bonds: Listed bonds held for more than 12 months are subject to 12.5% LTCG tax (on gains above ₹1.25 Lakh).
🛡️ 4. The India Wapsi “Credit Check” Protocol
- Rating Vigilance: We only recommend debt instruments with a minimum rating of A+ or higher. We monitor rating migrations in real-time.
- Sectoral Diversification: We ensure your debt portfolio isn’t overly concentrated in a single sector like Real Estate or NBFCs.
- Currency Hedging: For large debt allocations, we advise on hedging strategies to protect your returns against Rupee volatility.
🚀 How to Start
- Demat Setup: Link your NRE/NRO account to an NRI-compliant Demat account.
- FATCA Compliance: Ensure your tax residency status is correctly updated to allow seamless debt trading.
- Laddering Strategy: Don’t put all your money in one bond. We help you “ladder” your investments across 1-year, 3-year, and 5-year maturities to ensure constant liquidity.
“In a world of volatile equities, a high-yield debt portfolio is the ‘Anchor’ of your India Wapsi journey. We make sure that anchor is both heavy and secure.”