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The RBI data underscores a broader evolution in India’s investment landscape
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As financial literacy improves and investors gain exposure to international markets, overseas assets are becoming a regular component of diversified portfolios rather than a niche allocation
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While domestic markets remain central to wealth creation, the growing allocation to global assets reflects a maturing investor base that is increasingly aligned with global financial trends
Indian investors are increasingly turning their attention to overseas markets, driven by stronger performance in global equities—particularly in the United States—and a desire to diversify portfolios beyond domestic assets. Recent data from the Reserve Bank of India (RBI) highlights a significant rise in outward investments by Indian residents, signalling a structural shift in investment behaviour.
According to the RBI, investments made by individuals in overseas equity and debt instruments rose by 54.5 per cent during the ten-month period ending October 2025. This sharp increase since January 2025 reflects growing confidence in global markets at a time when domestic equities have delivered mixed returns and faced intermittent volatility. The trend suggests that Indian investors are becoming more globally minded, seeking exposure to international growth stories and stable foreign assets.
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US markets have been a key draw. Major American indices have continued to outperform many emerging markets in 2025, supported by resilient economic growth, strong corporate earnings, and sustained interest in technology and innovation-driven sectors
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For Indian investors, this has translated into opportunities to participate in global leaders across artificial intelligence, clean energy, healthcare, and advanced manufacturing—segments that may have limited representation in domestic indices
Another factor supporting the rise in overseas investments is improved awareness and accessibility. Digital platforms, global brokerage services, and simplified regulatory frameworks have made it easier for Indian residents to allocate capital abroad. At the same time, the use of overseas investments as a hedge against currency risk has gained traction, especially during periods of global uncertainty and fluctuating exchange rates.
Debt investments have also seen increased interest, as global bond markets offer diversification benefits and, in some cases, more predictable income streams compared to equities. This balanced approach indicates that investors are not merely chasing returns but are also focused on risk management and long-term portfolio stability.
