FAQ: Can an NRI Buy Agricultural Land in India?

The short answer is no. Under the Foreign Exchange Management Act (FEMA), NRIs and Overseas Citizens of India (OCIs) are not permitted to purchase agricultural land, farmhouses, or plantation property in India.

This restriction applies regardless of whether the NRI holds an Indian passport or the duration of their overseas residency. The Reserve Bank of India (RBI) enforces this rule, and violations can result in confiscation of the property and financial penalties.

What NRIs and OCIs can purchase: - Residential property (apartments, villas, houses) - Commercial property (office space, shops, retail units)

There is no upper limit on the number of residential or commercial properties an NRI can buy. The payment must be made through NRE/NRO/FCNR(B) accounts using foreign currency remitted from abroad or funds already held in these accounts.

The one exception: if an NRI inherits agricultural land from a resident Indian, they may hold it. However, they cannot purchase it, and selling it requires special RBI permission. The sale proceeds from inherited agricultural land can only be repatriated with prior approval.

For investors interested in land-based exposure, the alternative is to invest in residential plots within approved township or layout projects, which are classified as residential — not agricultural — land. These are FEMA-compliant for NRI purchase.

Always verify the land classification in the revenue records before proceeding, as 'residential plot' and 'agricultural land' are sometimes confused in informal transactions.

Want these insights delivered before anyone else?

Join our confidential investor briefing — subvention alerts, off-market deals and market intelligence, first.