Now Reading: Indians’ overseas investments push remittances up 20% in June
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Indians’ overseas investments push remittances up 20% in June
Outward remittances by Indians under the Liberalised Remittance Scheme (LRS) rose 20% year-on-year to $2.5 billion in June, driven by a doubling of investments in foreign equity and debt. Investment in equity/debt…
Outward remittances by Indians under the Liberalised Remittance Scheme (LRS) rose 20% year-on-year to $2.5 billion in June, driven by a doubling of investments in foreign equity and debt. Investment in equity/debt hit an all-time high of $0.46 billion, while deposits grew 75% YoY to $0.07 billion, though they fell 40% month-on-month.
Travel remained the largest category, accounting for 54% of total remittances at $1.37 billion. Education-related remittances rose 15% month-on-month to $0.49 billion. For the April-June quarter, total outward remittances under LRS stood at $7.2 billion, up from $6.9 billion a year earlier.
Experts cited a subdued return profile of Indian equities and the weakening rupee as factors pushing high-net-worth individuals to diversify globally. Elon Musk-led SpaceX's $1.75 trillion IPO in June also contributed to the spike in investment activity, according to the RBI bulletin released on Tuesday.
Indian Opinion Analysis
The surge in outward remittances for equity and debt marks a shift as Indian investors increasingly seek dollar-denominated assets amid the rupee's decline. Under the RBI's LRS framework, individuals can remit up to $250,000 per financial year without prior approval. The next RBI bulletin, due in September, will show whether this trend sustains as the US Federal Reserve's rate decisions influence global asset returns.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above.
