Investing abroad is emerging as the fastest-growing category for Indian remittances. The amount of dollars sent abroad for the purpose of investments in equities has significantly increased in the last five years.
The scale of this shift is hard to miss: month-on-month, Indians sent nearly 13.4 times more money abroad for equity and debt investments in June 2026 than they did in June 2020, while the full-year figure for FY2025-26 stands at 5.6 times the FY2020-21 level.
RBI Data Confirms The Trend
Outward remittances under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) for the ‘Investment in equity/debt’ category have climbed sharply over the past five years, RBI Bulletin data for FY2020-21, FY2024-25 and FY2025-26 shows.
“RBI data shows overseas equity and debt investments under LRS rose 56% year-on-year to $2.65 billion in FY26, up 5.6x over five years. Overseas-focused mutual fund AUM also jumped 83% in the year to May 2026,” says Viram Shah, Founder and CEO, Vested Finance.
Growth Pattern
Month-to-month (June-on-June), investment in ‘Investment in equity/debt’ category is the outright fastest-growing LRS category. But that dominance doesn’t hold up over the full fiscal year. Over the full fiscal year, it’s the second-fastest as ‘purchase of immovable property’ edges it out (63.77% vs 56.10%), even though equity/debt remains far larger in absolute dollar terms ($2.65 billion vs $528.70 million).
| Indian Investments in Overseas Equity & Debt | |
| Period | Investment / Growth |
| FY2020-21 | $471.80 million |
| FY2024-25 | $1.70 billion |
| FY2025-26 | $2.65 billion |
| Growth in 5 years | 5.62X |
| FY26 growth YoY | 56.10% |
| June 2020–June 2026 growth | 13.4X |
Source: RBI Website
Why Indians Are Going Global
Indian investors are gradually recognizing the importance of diversifying geographically for effective portfolio diversification. “India is only about 4% of global equity market cap, over 95% of opportunity lies outside it. Concentrating locally means full exposure to India- or South Asia-specific shocks, from tariffs to currency moves. Add the rupee’s steady depreciation against the dollar, and global allocation becomes a core portfolio strategy, not optional,” says Shah.
What Are They Buying in the US?
Indian investors are largely investing in big tech stocks at a time when SEBI’s restrictions have made international mutual funds almost inaccessible to Indian investors. So where exactly is this money flowing? “Technology stocks commanded the top spots in overseas purchases, led by Micron followed by major players like NVIDIA, Microsoft, Broadcom, and Marvell Technology. Semiconductor and hardware names (Micron, NVIDIA, Broadcom, Marvell, SanDisk) saw exceptionally heavy interest, indicating strong continued demand for AI and chip-related themes.
Meta Platforms and Alphabet pulled significant capital, maintaining Indian investors’ appetite for large-cap US tech leaders. Space Exploration Technologies Corp (SpaceX) also captured significant retail/investor interest,” informs Shah.
The Full-Year Numbers
In FY2020-21, resident individuals sent out $471.80 million for equity and debt investments abroad. By FY2024-25, this had grown to $1.70 billion ($1,698.94 million). In FY2025-26, the figure rose further to $2.65 billion ($2,652.01 million).
That means the FY2025-26 figure is 5.62 times the FY2020-21 level, a rise of roughly 462% in five years. Compared with FY2024-25 alone, FY2025-26 was up 56.1%, an increase of about $953 million in a single year.
June Snapshots Show It Sharper
The month-on-month comparisons for June are sharper still. Investment in equity/debt stood at $34.16 million in June 2020, rose to $66.91 million in June 2021, then to $120.22 million in June 2024, $206.12 million in June 2025, and finally $456.69 million in June 2026.
That takes June 2026 to nearly 13.4 times the June 2020 figure, an increase of about 1,237% over six years. Against June 2021, June 2026 is up 6.8 times, a rise of roughly 583%. Even the one-year jump from June 2025 to June 2026 works out to 2.2 times, up 121.6%.
The LRS Framework
Indians are allowed to send dollars abroad for specified purposes and up to a certain limit each financial year. Here’s how the scheme actually works: The RBI’s Liberalised Remittance Scheme permits all resident individuals, including minors, to remit up to $250,000 per financial year for any permissible current or capital account transaction or a combination of both. The scheme applies to individuals only; companies, HUFs, partnership firms, and trusts operate under separate FEMA provisions.
Taken together, the data points to a structural shift rather than a one-off spike — Indian money is moving abroad faster each year, and increasingly toward the same handful of US tech names driving global markets.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investment in foreign securities involves significant risks, including currency fluctuations, different financial reporting standards, and varying regulatory environments. The historical performance of US stocks is not a guarantee of future returns, and gains should not be viewed as an offer or solicitation to buy. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor. Financial Express is not responsible for any decisions made based on this information.