Are Indians increasingly remitting money abroad, primarily for purchasing properties overseas. According to the Reserve Bank of India Bulletin data for April 2026, the total amount of money sent abroad by Indians rose from $1,964.21 million in Feb 2025 to $2,338.60 million in Feb 2026, a significant 19.06% increase.
Of this, the ‘Purchase of immovable property’ category saw the highest jump. From $28.76 million in Feb 2025, the remittance in Feb 2026 nearly doubled to $51.36 million, a 78% increase.
Investing Abroad
Investment in the equity/debt segment saw a 53% year-on-year increase as of Feb 2026. The remittance grew from $173.84 million in Feb 2025 to $265.99 million in Feb 2026.
Incidentally, the US stock market was in the grip of bears from February and March 2025 as investor sentiments were weak after President Donald Trump’s tariff and trade war announcement against major U.S. trading partners.
As the RBI data shows, Indian investors likely took the correction in the markets as an opportunity to buy low. After dropping from 6,000 to nearly 5,000 in these two months, S&P 500 recovered to 6,800 by February 2026. Currently, the S&P 500 is at 7,135, rising 28% in the last 1 year. A similar pattern was observed in Nasdaq-100, the tech-heavy index, comprising some top names like Nvidia, Tesla, Apple, Amazon and Microsoft, the popular stocks with Indians investing abroad.
Studying Abroad
All other categories also show modest growth; however, a fall was witnessed in the ‘studies abroad’ segment. From $182.17 million, the remittances dropped to $ 175.68 million, a decline of 3.5%.
Every year, lakhs of Indian students go abroad for studies. Top countries for Indian students include the US, UK, Canada, Australia and New Zealand. Most of these countries, especially the US, UK, tightened their immigration laws for foreign students, making them less attractive destinations. With the Trump administration taking several measures against existing students and framing new policies around student visas, Indian students may have changed their preferences.
Indian students are increasingly exploring more affordable study destinations rather than the traditional ones like the US or UK. This shift suggests a slight decline in remittance for foreign education, but not a complete abandonment of studying abroad.
Sending Money Abroad
The Reserve Bank of India Bulletin data helps to understand where do Indians spend dollars after remitting them abroad. Under the RBI’s Liberalised Remittance Scheme (LRS), every resident, including minors (countersigned by a guardian), is allowed to remit up to 2.5 lakh US dollars (USD 2,50,000) per fiscal year.
The more the Indian rupee depreciates, the more dollars can be remitted abroad legally. In March 2025, at an exchange rate of Rs 86 to a dollar, one could have sent nearly Rs 2,15,00,000, or Rs 2.15 crore. Today, at an exchange rate of nearly Rs 95, one can send Rs 2.37 crore.
Where are Indians Spending Dollars Abroad
RBI segregates data on outward remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals into ten subheads — Deposit, Purchase of immovable property, Investment in equity/debt, Gift, Donations, Travel, Maintenance of close relatives, Medical Treatment, Studies Abroad, Others.
The full year 2025-26 data is yet to be published by the RBI. For 2024-25, the total outward remittances under the Liberalised Remittance Scheme were $29,563.12 million.
Indians spend the most dollars on travelling abroad. Travel accounted for more than half of all funds sent abroad, predominantly for leisure and business trips. In 2024-25, $16,964.57 million was remitted, nearly 57.3% of the total remittances.
13% of remittances were for the maintenance of close relatives, 10% for gifting, 10% for studies abroad, 5% for equity/debt investments, and 1% for purchasing immovable property.
Takeaways
Indians are not prioritizing buying properties abroad, but potential investment opportunities may lead to significant jumps in interest, as seen in February 2026. The investment in equities made in Feb 2025, higher than the previous year’s average, also points towards jumping into investment opportunities abroad.
Disclaimer: This article draws on RBI Bulletin data for general awareness purposes only and should not be construed as investment, financial, or legal advice. Overseas investments, property purchases, and remittances under the Liberalised Remittance Scheme are subject to RBI regulations and tax laws, which may change without notice. Readers are urged to verify the latest LRS rules and consult a qualified professional before taking any financial action.