India has entered a new phase in global finance. While foreign securities were once the domain of NRIs and ultra-rich investors, today, regular Indian investors are taking the plunge into international investments. And it's not just travel or education—it's a full-blown investment surge overseas, powered by digital platforms, regulatory ease, and a growing appetite for diversification.
This trend is reshaping how we think about money—and where it goes.
LRS: The Gateway to Global Markets
The Liberalised Remittance Scheme (LRS), minted by RBI in 2004, allows resident Indians to remit up to US $250,000 per financial year, covering outward remittances for travel, education, medical needs, foreign property, and importantly, foreign securities.
While FY24 saw record remittances of US $31.73 billion, FY25 recorded a slight dip to US $29.56 billion, down 6.85%, due to global uncertainties and weaker domestic income. However, investment flows bucked the trend—equity and debt remittances jumped over 12% to US $1.699 billion in FY25, signaling a keen interest in foreign stocks and global diversification.
What’s Fueling the Investment Surge?
a. Premiums on Domestic Global ETFs
International ETFs listed in India often come with a premium. Many investors see direct foreign securities purchase via LRS as more cost-efficient—skipping that markup and getting cleaner market exposure.
b. Crypto to Capital Gains
Recent regulatory shifts—like the Tax Collected at Source (TCS) jump from Rs 7 lakh to Rs 10 lakh—streamlined the process. The TCS is adjustable through tax filings, making it more of a paperwork step than a cost deterrent.
c. Sleeker Platforms
Fintech upgrades and better international investment platforms mean even non-experts can buy foreign securities with a few clicks—right from their Indian bank accounts.
Pandemic-Era Trends: Education & Travel Take a Back Seat
Travel usually dominates LRS outflows (~60%), while educational spending has been slowing. In FY25, education dropped ~16% YoY, and travel saw a slight decline—prompting many to redirect funds into investments.
During certain months, like February and April, travel and education remittances plunged sharply—travel dropped ~34% and education halved in Feb; yet investment remittances surged in contrast.
Diving into Global Markets
Why are Indians increasingly buying foreign stocks and bonds directly?
Tech-led growth: With booming sectors like US tech and biotech, many see long-term potential overseas
Global diversification: Spreading risk outside India helps hedge currency and market cycles
Bond income: Stronger yields in foreign bonds and advantages for Pokémon portfolio balance
In fact, Indian investment via LRS is becoming a multi-billion-dollar stream—forecast to grow even more.
Up Next: Tightening Regulations
In June 2025, RBI proposed barring foreign time-deposits and passive interest accounts to prevent capital being parked abroad.
Aim: To target passive wealth shifting, not active investing abroad
LRS continues for equities, mutual funds, and property
March often sees spikes, but regulation may smooth out sudden surges
Investors should keep an eye on potential tweaks to scheme details or documentation needs.
LRS Trends to Watch
| Metric | FY25 vs FY24 | Trend |
|---|
| Total Outflows | US $29.56 b vs US $31.73 b (-6.85%) | Slight dip |
| Equity & Debt | US $1.699 b vs US $1.51 b (+12.5%) | Strong growth |
| Education | US $2.92 b vs US $3.48 b (-16%) | Weakening |
| Travel | US $16.96 b vs US $17 b (-0.25%) | Stable |
Data speaks volumes: while travel and education ebb, investment remittances are flowing strong
What This Means for Indian Investors
Every rupee sent abroad becomes a global opportunity:
Access to cutting-edge tech, biomed, and green energy companies
Diversified portfolios that can cushion against Indian market volatility
Potential for currency gains if rupee weakens, but remember FX risk too
However, investors must tread carefully:
Know your tax liability—foreign income/bond interest has its own rules
Keep a close watch on LRS limit; it resets every April
Stay updated on RBI policy—regulator may tweak rules anytime
Indira Securities Helps Navigate Overseas Investment
Indira Securities equips Indian investors to access international markets smartly and securely—without pushing stock tips or trading noise.
Open a Demat account quickly for global equity access
Mobile Trading App gives real-time charts, alerts, seamless order placement
Explore overseas spending and portfolio allocation tools under one roof
It's a powerful, intuitive platform enabling growth—not decision-making pressure—for smart global investing.
Final Thoughts
India's outward remittances via LRS may have dipped overall, but investment in foreign stocks and bonds is booming. As global markets allure Indian investors, the scheme is evolving—and so must our awareness and compliance.
With fintech bridges like Indira Securities, access is easier than ever. But as your portfolio crosses borders, so does responsibility: monitor limits, taxes, and global regulatory flips.
Disclaimer: This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.