Whalesbook
In FY26, total money sent abroad by Indians under the Liberalised Remittance Scheme fell by 2% to $28.95 billion. While spending on travel and education slowed, individuals significantly increased investments in foreign equity, debt, and deposits, which saw a 43.7% rise, according to RBI data.
What Happened
Latest data from the Reserve Bank of India (RBI) shows that outward remittances from India saw a marginal decline in the fiscal year 2025-2026. The total amount sent abroad by individuals under the Liberalised Remittance Scheme (LRS) stood at $28.95 billion. This marks a 2% decrease compared to the $29.56 billion recorded in the previous fiscal year (FY 2024-2025).
The LRS is a regulatory framework that allows resident individuals in India to send a certain amount of money abroad each year for various purposes, including education, travel, medical treatment, and investments. The current annual limit under this scheme is $250,000 per individual.
Why The Shift in Spending Matters
The slight dip in the total remittance number is largely attributed to a decrease in spending on two major categories: international travel and overseas education. These two areas have historically made up a significant portion of the money sent abroad by Indians.
However, a clear shift in behavior has emerged. While consumption-based remittances for travel and education slowed down, funds directed toward wealth creation and global asset allocation saw a sharp increase. This indicates that Indian individuals are increasingly looking to diversify their portfolios by holding assets outside of India, such as foreign equity, debt, and bank deposits.
The Surge in Investment Remittances
The most notable trend in the FY26 data is the 43.7% year-on-year increase in money sent abroad for investment purposes. The acceleration became more apparent toward the end of the fiscal year.
For instance, in March 2026, remittances for investments reached $440.22 million, significantly higher than the $306.30 million recorded in March 2025. The monthly trend also confirms this momentum, with investment remittances growing from $178.86 million in January 2026 to $265.99 million in February, and further to $440.22 million in March 2026. This data suggests that Indian savers are actively moving capital into international markets.
The Cooling Interest in Overseas Property
While investments in financial assets like equity and debt have risen, the interest in purchasing immovable property abroad has moved in the opposite direction. Data for March 2026 shows that $38.68 million was remitted for the purchase of foreign property, which is a 14.2% decline compared to the $45.10 million sent for the same purpose in March 2025. The trend during the first quarter of 2026 showed a consistent sequential decline, suggesting that high costs, interest rates, or changing sentiment may be impacting the appetite for international real estate.
What Investors Should Track Next
Investors and market observers may keep an eye on several factors following this shift. First, the resilience of the Indian Rupee remains a key monitorable, as higher outward remittances can impact the supply of foreign exchange. Second, investors should track any regulatory updates from the Reserve Bank of India regarding the LRS, as the central bank periodically reviews these flows to manage currency stability. Finally, the sustainability of this investment trend will likely depend on global market performance and the ease of investing in foreign assets through local platforms, which have become more accessible in recent years.