Global investments via LRS surge in FY26

RBI data suggests investors are stepping up overseas allocations through both equity and debt investments

- DIPAK MONDAL

WITH Indian equity markets entering a prolonged phase of tepid growth, investors are increasingly looking overseas to diversify their portfolios. Latest data from the Reserve Bank of India (RBI) suggest that investors are stepping up overseas allocations through both equity and debt investments.

As per RBI data, overseas equity and debt investments under the Liberalised Remittance Scheme (LRS) rose 56% in FY26 to $2.65 billion from $1.7 billion in the previous financial year. Over the past five years, overseas equity and debt investments under the LRS have surged 5.6 times, while over past decade they have risen 8.3 times. Under the LRS framework, resident individuals, including minors, are allowed to remit up to $250,000 per financial year outside India for permissible current or capital account transactions.