Indian investors are increasingly using digital infrastructure to access overseas financial markets, with outward remittances under the Liberalised Remittance Scheme (LRS) rising sharply over the past several years. LRS remittances increased from $11.33 billion in FY2018 to a record $31.73 billion in FY2024, reflecting growing international travel, education and investment activity.
More notably, remittances directed toward overseas equity and debt investments have expanded rapidly. These investments rose from around $431 million in FY2020 to approximately $2.65 billion in FY2026, with their share of total LRS outflows increasing from 2.3% to 9.1%.
Digital Infrastructure Makes Overseas Investing Easier
India’s rapidly expanding digital ecosystem is reducing the friction involved in investing abroad. Technologies and platforms such as Aadhaar, DigiLocker and UPI, along with the development of GIFT City and faster settlement through T+1 systems, have made cross-border investing more accessible to Indian residents.
This digital transformation is particularly significant for retail investors, who can increasingly complete documentation, verification and investment processes online rather than relying on extensive paperwork.
Indian Investors Look Beyond Domestic Markets
The growing allocation toward overseas equity and debt also indicates increasing interest in portfolio diversification and global investment opportunities. While domestic markets remain central to Indian household investments, access to international assets gives investors an opportunity to diversify geographically and gain exposure to global companies and markets.
The trend demonstrates how India’s combination of digital public infrastructure and financial technology is reshaping cross-border investment. As digital onboarding and payment systems continue to improve, overseas investing could become an increasingly important component of India’s evolving retail investment landscape.