Indians’ Overseas Stock and Bond Investments More Than Double to $322 Million in August: RBI

Investments by Indians in overseas equity and debt markets more than doubled in August 2026 from a year earlier, reflecting a sharp rise in outward investment under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS).

Investments in foreign equity and debt instruments surged 111 per cent year-on-year to $321.53 million in August, compared with $152.18 million in the corresponding month of 2025, according to data published in the RBI's October 2026 bulletin.

However, the monthly outflow under this category declined by around 7 per cent from July. Investments had reached a record high of approximately $460 million in June.

The figures indicate that overseas financial investments are becoming a more significant component of Indians' outward remittances. In August, equity and debt investments accounted for around 11.7 per cent of total LRS outflows, up from 5.8 per cent a year earlier.

The LRS allows resident individuals in India to remit money abroad for permitted purposes, subject to the scheme's conditions and limits.

Total outward remittances under the scheme rose 3.6 per cent year-on-year to $2,738.58 million in August 2026, compared with $2,642.91 million in August 2025. The figure was also around 6 per cent higher than the $2,582.62 million recorded in July.

For the full financial year 2025-26, total outward remittances under the scheme stood at $28,979.36 million, according to the RBI data.

Travel continued to dominate the LRS outflow basket, accounting for approximately 59 per cent of the total in August. Remittances for travel reached $1,630.26 million, marginally higher than the $1,618.81 million recorded a year earlier. The category registered year-on-year growth of about 1 per cent, although it rose 11.4 per cent from July's $1,463.11 million.

Business travel recorded a particularly sharp monthly increase, with remittances climbing from $10.9 million in July to $51 million in August, nearly five times the previous month's level.

Other categories also registered increases. Gift remittances rose to $215.72 million from $190.43 million a year earlier, while transfers for the maintenance of close relatives edged up to $275.43 million from $272.05 million.

Remittances for purchasing immovable property abroad increased to $39.59 million from $36.02 million. Deposits rose to $50.78 million from $42.75 million over the same period.

Meanwhile, remittances for medical treatment abroad increased 21.3 per cent year-on-year to $4.84 million.

The rise in overseas equity and debt investments stands out against the relatively modest growth in total outward remittances. Although travel remains the largest use of funds sent abroad under the LRS, the growing share of investments suggests that overseas financial assets are accounting for a larger portion of residents' international transfers.