Can I invest directly in Indian stocks as an NRI living in the US?

Yes, NRIs can buy Indian stocks directly, but it requires the right account structure. You typically invest through the RBI's Portfolio Investment Scheme (PIS) using an NRE or NRO bank account linked to an NRI demat and trading account. Individual stocks are not PFICs, so direct equity avoids the worst of the mutual-fund trap — gains report on your US return like any capital gain, with a foreign tax credit available for Indian taxes paid. You'll still face Indian capital-gains tax and TDS, plus US reporting (FBAR, Form 8938) on the holdings. The friction is real: currency conversion, two tax systems, and recordkeeping in rupees and dollars. Many US-resident NRIs decide the simplicity of US-domiciled India funds outweighs the appeal of picking individual Indian names.