Indians up global markets bet; investments rise 54%

INVESTMENTS BY INDIAN residents in overseas equity and debt have surged this year, reflecting a growing appetite for global assets and stronger returns in foreign markets.

- GEORGE MATHEW

Data from the Reserve Bank of India (RBI) show that outward investments by individuals rose 54.50% during the 10-month period ended October 2025, underscoring a clear shift in portfolio preferences amid mixed domestic market conditions.

According to RBI data, Indian residents invested $1.959 billion (over ₹17,000 crore) abroad between January and October 2025, compared to $1.268 billion in the year-ago period. The momentum significantly picked up in the latter part of the period, with investments jumping to $278 million in September and $273 million in October, almost double the $135 million and $149 million recorded in the same months of 2024.

Market participants say the spike coincides with strong performance of US equities after the return of Donald Trump as the President, renewed interest in technology stocks and the search for diversification beyond Indian markets.

On the other hand, foreign investors have pulled out ₹86,960 crore (around $9.66 billion) from India so far in 2025.

The relative performance gap between global and domestic equities has played a key role in driving these flows. The Nasdaq Composite, which is heavily tilted towards technology and growth stocks, has delivered a robust return of around 21% in calendar year 2025 as of December 22.

IN CONTRAST, THE Sensex has gained a modest 9.4% over the same period.