Archive · 29 Jul 2026
Indian Investors Expand Overseas Investments Amid Domestic Challenges
Indian investors are increasingly looking to invest overseas due to the underperformance of domestic markets and the strength of the US dollar.
Companies like SpaceX, Meta, Nvidia, Microsoft, Amazon, and Tesla are attracting significant interest.
The Reserve Bank of India's Liberalised Remittance Scheme allows Indians to invest up to $250,000 abroad each financial year.
Overseas investments have risen sharply, with assets under management in international funds growing by 83% in the year to May 2026.
Experts recommend allocating 5-20% of portfolios to international investments, depending on risk tolerance and financial goals.
However, investors must consider taxes, compliance norms, and the potential risks of market cycles and currency fluctuations.
Indian investors are increasingly investing overseas due to domestic market underperformance and the appeal of higher returns in global markets.
SpaceX's June 2026 IPO saw significant participation from Indian investors, accounting for 20% of volumes on India-based trading platforms.
Overseas equity and debt investments under the Liberalised Remittance Scheme (LRS) rose 56% year-on-year to $2.65 billion in FY26.
Assets under management in domestic fund of funds investing overseas increased 83% to ₹49,430 crore in the year to May 2026.
Experts recommend allocating 5-20% of portfolios to international investments, considering risk tolerance and financial goals.
- Who
- Indian investors, financial experts, and regulatory bodies like RBI and Sebi
- What
- Increased overseas investments by Indian investors due to domestic market underperformance and diversification needs
- When
- FY26, with significant trends observed in June 2026
- Where
- Primarily in US markets, with considerations for Europe, emerging markets, and China
- Why
- To diversify portfolios, benefit from higher returns in overseas markets, and mitigate domestic risks
Domestic Investment Advocates
International Investment Advocates
Market Performance
Domestic Investment Advocates
Domestic markets offer stability and familiarity, with potential for growth tied to local economic policies and performance.
International Investment Advocates
Overseas markets, particularly in the US and other developed economies, have shown higher returns and diversification benefits.
Risk Management
Domestic Investment Advocates
Investing solely in domestic markets reduces exposure to foreign currency risks and geopolitical uncertainties.
International Investment Advocates
Diversifying internationally helps mitigate single-country risks and provides access to global economic trends and innovations.
- SpaceX IPO
- June 2026, $75 billion raised, 20% volumes from Indian investors
- LRS Investments FY26
- $2.65 billion, up 56% year-on-year
- AUM in Overseas Funds
- ₹49,430 crore, up 83% in the year to May 2026
- Rupee Depreciation
- 4% annual depreciation against the US dollar over the past 20 years
- US Market Share
- 64-65% of global equity market capitalisation
- Tax on International Investments
- 12.5% long-term capital gains, 30% withholding tax on US dividends