Indian investors eye record $4 Billion overseas investments in FY27

Indian investors are increasingly looking beyond domestic markets to tap global investment opportunities, putting the country on track to record more than $4 billion in overseas investments in foreign stocks and debt in FY27. The growing demand for international assets comes amid subdued returns in the domestic equity market and rising interest in diversifying portfolios across geographies and currencies.
Data from the Reserve Bank of India (RBI) show that Indian residents invested $1.73 billion in overseas equity and debt instruments under the Liberalised Remittance Scheme (LRS) during April-August 2026, more than double the $823 million recorded in the corresponding period last year. At the current pace of nearly $350 million a month, annual investments could cross the $4-billion mark for the first time, against $2.65 billion in FY26.The shift reflects growing investor interest in global technology companies, artificial intelligence, semiconductor manufacturing, defence technology and other emerging sectors that offer opportunities beyond the domestic market. With Indian equities struggling to sustain gains, overseas markets are increasingly finding a place in investors' portfolios,noted experts.
The trend is also visible in the growing business of international investment platforms. Vested, which manages around $1.5 billion in assets and has nearly 1.5 lakh active investors, has reported a sharp rise in new users and deposits. Its annual deposits have grown nearly tenfold since 2023, indicating increasing acceptance of global investing among Indian households.Beyond listed equities, investors are also exploring overseas fixed-income instruments, private credit and alternative investment opportunities through routes such as GIFT City. Foreign deposits attracted nearly $2 billion in Indian investments during FY23 and FY24 combined, while overseas property purchases under the LRS route touched a record $529 million in FY26.Gautami Gavankar, Head – NR Business at Kotak Private Banking, said investors are increasingly looking beyond overseas equities to explore fixed-income strategies, private credit and alternative investments through the GIFT City ecosystem. She noted that global investments are helping Indian investors diversify currency risks while gaining exposure to emerging sectors such as AI infrastructure, semiconductors, defence technology, biotechnology and space technology, which may have limited investment opportunities in domestic markets.
However, rising overseas investments are also adding to pressure on India's external finances. Alongside increased outward foreign direct investment by Indian companies, profit repatriation by foreign investors and a wider trade deficit amid elevated energy prices, capital outflows have contributed to pressure on the rupee.The government and RBI have taken steps to attract foreign capital, including tax incentives for overseas investors in government debt. However, restricting outward remittances under the LRS could prove challenging, given the importance of allowing investors access to international markets.The annual LRS limit currently stands at $250,000 per individual. Introduced in 2004, the scheme has enabled Indians to invest, save and acquire assets overseas as their incomes and financial aspirations have grown, according to agency reports.The expanding demand for global assets signals a gradual shift in Indian investment behaviour. Rather than relying entirely on domestic markets, investors are increasingly spreading their money across countries, currencies and asset classes, making international diversification an emerging feature of India's investment landscape.

(Business Correspondent)