Indian investors are demonstrating unprecedented enthusiasm for overseas investments, with RBI's Liberalised Remittance Scheme (LRS) data showing outward remittances for equity and debt investments reached $344.57 million in July 2026, representing a dramatic 121% increase from $156.19 million in July 2025. According to the latest RBI data, the trend has been consistently upward throughout 2026-27, with monthly remittances rising from $238.63 million in April to $363.64 million in May and $456.69 million in June, before easing slightly to $344.57 million in July. The most striking statistic shows that the four months from April to July 2026 totaled $1,403.53 million, already representing about 53% of the full FY2025-26 total of $2,652.01 million. This represents a significant shift, as Indians sent 13.4 times more money for equity and debt investments in June 2026 compared to June 2020, with the full-year FY2025-26 total being 5.6 times higher than FY2020-21.
Indian residents can purchase US stocks directly through the RBI's Liberalised Remittance Scheme (LRS), which allows up to $250,000 per financial year for permitted transactions including overseas share investments. According to reports from Mint, investors can open accounts with brokers accepting Indian residents, such as Interactive Brokers and Vested, and transfer funds through LRS to convert rupees into dollars. Once funds reach the brokerage account, investors can buy stocks on major US exchanges including the New York Stock Exchange and Nasdaq, with GIFT City in Gujarat offering investment platforms regulated by the International Financial Services Centres Authority. Recent platforms like Tickertape and NSE IX Global Access now support dollar-amount investing from as low as $1 (approximately ₹90), allowing investors to specify exact amounts rather than whole share quantities. As noted by Vested founder Viram Shah, "For an Indian investor, a US stock pays in two ways: the stock's own return and the currency. This year the S&P 500 is up about 12% in dollars. Because the dollar has also gained against the rupee, the return in rupees is higher for Indian investors."
Indian mutual funds and exchange-traded funds (ETFs) provide an indirect route to US market exposure, as reported by Mint. These funds invest through international funds or follow indices such as the Nasdaq-100 or S&P 500, allowing investors to invest in rupees using their demat account or mutual fund app. However, this approach avoids international bank transfers and LRS paperwork but limits investors to predetermined fund choices rather than individual stock selection. Some fund houses have paused fresh investments when overseas investment limits approach capacity. smallcase has launched curated US stock and ETF portfolios with a minimum investment of $50, supporting fractional investing through IFSCA-registered Global Access Provider at GIFT City.
According to Mint reports, tax collected at source (TCS) applies to certain LRS transfers above ₹10 lakh at 20%, excluding transfers for education or medical needs. US dividends generally incur a 25% withholding tax for individuals under the tax treaty, with investors required to submit Form W-8BEN to claim this rate. Gains on shares held for more than 24 months are subject to 12.5% tax, while shorter holdings are taxed according to income tax slab rates. Investors must disclose foreign assets and file income tax returns, even when income falls below the basic exemption limit. The 20% TCS applies only to excess remittances above ₹10 lakh annually, which is adjustable against tax liability or refundable, though it blocks cash during the interim period.
The latest market data reveals significant performance differences between Indian and US markets, with the Nifty 50 down over 12% in 2026 while the S&P 500 gained 12% and the Nasdaq-100 rose 18%. As reported by The Financial Express, the rupee has depreciated nearly 5.7% against the US dollar, adding to the return for Indian investors in US stocks when converted back to rupees. However, experts caution against currency-driven investment approaches, with Vested CEO Viram Shah emphasizing that "a weaker rupee makes it more expensive to buy US stocks. It does not make them cheaper. Each dollar now costs about 7% more than it did in January." The diversification benefits are clear, as India makes up only about 4% of global equity market capitalization, making overseas investments essential for portfolio diversification and access to global opportunities beyond regional shocks and currency fluctuations.
