Overseas investing is booming for Indians, even as total LRS outflows fall

Indian residents increased their appetite for overseas assets in FY2025-26, sending nearly $2.6 billion abroad for investment purposes, according to data cited in the latest Reserve Bank of India bulletin.

The figure marks a 56% jump from the $1.69 billion recorded in FY2024-25, pointing to stronger interest in global equity, debt, and property exposure even as overall outward remittances under the Liberalised Remittance Scheme (LRS) edged lower.

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LRS outflows ease, but investment remittances surge

The broad LRS outflow figure stood at $28.9 billion, or $28,979.36 million, in FY2025-26, compared with $29.5 billion, or $29,563.12 million, in the previous fiscal year.

That works out to a decline of 1.97% year on year. The data suggest that while spending through the scheme was slightly softer overall, capital linked to overseas investments continued to gain ground.

Equity and property take the lead

The strongest movement came in the category of “investment in equity and debt,” which has shown higher outflows since January 2026, according to the Financial Express.

February 2026 saw $265.99 million in outflows, while March climbed to $440.22 million. April 2026 remained elevated at $238.63 million, up 17.30% from $203.44 million in April 2025.

Remittances for the purchase of immovable property rose 10.11% year on year in April 2026 to $49.21 million from $44.69 million a year earlier.

How the LRS is being put to work

The Liberalized Remittance Scheme allows resident individuals, including minors, to remit up to $250,000 per financial year for permissible current or capital account transactions, or a combination of both.

The investment-linked categories of equity, debt, and real estate together accounted for nearly $2.65 billion, or about 10% of total LRS outflows. By contrast, categories such as maintenance of close relatives and medical treatment saw steeper declines over the year.

Overseas assets gain a bigger share

The pattern suggests that Indian households with overseas exposure are using the remittance route increasingly for asset allocation rather than only for traditional purposes such as travel, education, or family support.

The shift is visible even though total LRS outflows remain clustered around the $28 billion to $29 billion range. For now, the RBI data indicate that foreign investment is claiming a larger share of that pool, with equity and debt transfers leading the move.

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FAQs

Q1: What is the RBI's Liberalised Remittance Scheme (LRS)?

Ans: The RBI's Liberalised Remittance Scheme allows resident Indians to remit up to $250,000 per financial year for permitted current and capital account transactions.

Q2: Why are more Indians investing overseas under the LRS?

Ans: RBI data show overseas investment remittances rose 56% in FY2025-26, reflecting growing interest in global equities, debt and overseas property.