Increase cap on overseas investments through MFs

In Swades (2004), Mela Ram—a village cook who longs to emigrate to the United States (US) and repeatedly seeks the help of Mohan Bhargava (Shah Rukh Khan)—eventually "sees the light," declaring that emigration is like apni chaukhat ka diya giving light to the neighbour's house (your lamp lighting the neighbour's house instead of your own).

- HARSH ROONGTA

In Swades (2004), Mela Ram—a village cook who longs to emigrate to the United States (US) and repeatedly seeks the help of Mohan Bhargava (Shah Rukh Khan)—eventually "sees the light," declaring that emigration is like apni chaukhat ka diya giving light to the neighbour's house (your lamp lighting the neighbour's house instead of your own). I always found this sermonising jarring and elitist. After all, Mohan himself had emigrated, worked at National Aeronautics and Space Administration (NASA), and returned only because of the money and expertise he gained abroad. To deny Mela Ram that same chance felt overly moralistic.

And yet, the Swades paradox plays out in our markets. The Reserve Bank of India (RBI) capped overseas investments by Indian mutual funds (MFs) at $7 billion, a ceiling hit in February 2022. Since then, ordinary Indians have been barred from investing through regulated funds in global markets, while wealthy individuals can freely remit up to $250,000 a year (₹2.25 crore) under the Liberalised Remittance Scheme (LRS).