The Complete Guide to International Investing from India
Everything Indian investors need to know about investing globally: routes, regulations, taxes, platforms, and how to actually get started.
Most Indian investors have never bought a single foreign asset. Not a US stock. Not a global ETF. Not a bond denominated in anything other than rupees.
It isn't for lack of ambition. It's because the path has always felt unclear. Which route do you use? What does the RBI allow? How much tax will you pay? Is it even legal?
The answer to that last question is a definitive yes. The Reserve Bank of India explicitly allows Indian residents to invest up to $250,000 per year in overseas assets. The routes are well-defined. The tax treatment is documented. And the platforms to execute it are now available to anyone with a PAN card and a bank account.
Why Indian Investors Should Think Globally
India's stock market has been among the best-performing in the world over the past decade. That's exceptional, and Indian equities deserve a place in your portfolio. But consider three structural realities that pure domestic exposure cannot address.
Currency erosion is constant
The rupee has depreciated from approximately ₹17 per dollar in 1991 to over ₹93 today. That is a compound annual depreciation of roughly 3.5%. Every rupee you save loses purchasing power against global currencies every single year.
Concentration risk is real
India accounts for about 4% of global market capitalisation. The United States accounts for 44%. An India-only portfolio concentrates your wealth in a single economy, a single currency, and a single regulatory environment.
The world's dominant companies aren't listed here
Apple, Microsoft, Nvidia, Amazon, ASML, LVMH, Samsung, Toyota. You use their products daily. You generate their revenue. But if you only invest domestically, you can't own a single share.
5 Routes to Invest Globally
Indian investors have five distinct routes to access global markets. Each has different regulatory requirements, cost structures, and investment universes. Here is how they compare.
Direct Overseas Investment via LRS
The primary regulatory framework for investing abroad
- ✓Widest investment universe: stocks, ETFs, bonds, REITs, mutual funds, pre-IPO
- ✓Direct ownership of securities in your name
- ✓No SEBI cap constraints
- ✓$250,000 per person, per financial year
- •Requires LRS remittance process via your bank
- •TCS of 20% above ₹10 lakh (fully adjustable)
- •Mandatory Schedule FA disclosure in ITR
GIFT City (IFSCA-Regulated)
India's offshore financial hub on Indian soil
- ✓Not subject to SEBI's $7 billion overseas MF cap
- ✓IFSCA regulatory oversight under Indian law
- ✓Access through domestic AMCs with global mandates
- ✓April 2026: tax-neutral fund relocation regime active
- •Smaller product universe than direct LRS routes
- •Requires LRS remittance for funding
- •Newer ecosystem, still maturing
India-Domiciled International Mutual Funds
SEBI-regulated feeder funds
- ✓Rupee-denominated, no LRS paperwork
- ✓Standard Indian MF platforms (Groww, Zerodha Coin)
- ✓Simplest from a tax and operational standpoint
- •SEBI cap of $7B frozen since January 2022
- •Most schemes closed to fresh investments
- •Reopenings are unpredictable and temporary
- •Limited to schemes with remaining headroom
International ETFs on Indian Exchanges
Rupee-traded international index ETFs
- ✓Trade during Indian market hours in rupees
- ✓No LRS remittance required
- ✓Available on standard broker platforms
- •Subject to same SEBI overseas cap
- •Often trade at 5-10% premium to NAV when capped
- •Significant tracking error when limits are breached
- •Limited product choice
NSE IFSC Receipts
Unsponsored receipts tied to select US stocks
- ✓Trade in USD during Indian market hours
- ✓Listed on NSE IX at GIFT City
- ✓No overseas broker account needed
- •Only ~50 stocks available (vs thousands on LRS)
- •Liquidity still developing
- •No access to ETFs, bonds, or mutual funds
"Routes 1 and 2 bypass the SEBI cap entirely. For serious global investing from India in 2026, these are the only reliable paths."
$7 Billion and Frozen Since 2022
SEBI and RBI impose an industry-wide cap on how much Indian mutual funds can invest overseas. These limits were breached years ago and have not been raised. That is why Routes 3 and 4 are unreliable, and why Routes 1 and 2 have become the default.
What You Can Actually Invest In
Global investing is far broader than "buying US stocks." Here is the full universe available to Indian investors through LRS and GIFT City.
Tax Implications Decoded
Taxation is the single most cited reason Indian investors hesitate before going global. The rules are more straightforward than the acronyms suggest.
How to Start in 6 Steps
If you have read this far and are ready to act, here is a step-by-step outline from zero to your first global investment.
Determine your allocation
Decide what percentage of your portfolio you want global. 10-20% for conservative, 20-40% for moderate-to-aggressive. Zero is almost certainly wrong.
Choose your route
For most investors, an IFSCA-registered broker-dealer handling LRS compliance (like Valura) is the most practical starting point. GIFT City funds are an alternative for mutual fund preference.
Complete KYC and account setup
PAN, Aadhaar, bank details, basic declarations. Most platforms complete this digitally in under 24 hours.
Fund your account via LRS
Instruct your bank to remit using the correct purpose code (S0001 for equity). Banks collect TCS on amounts above ₹10 lakh. Some platforms offer integrated remittance.
Invest systematically
Start with broad diversification. An S&P 500 ETF or global equity fund is a reasonable first allocation. Add individual stocks, bonds, and other asset classes as you get comfortable.
Report and comply
Disclose foreign holdings in Schedule FA. Report dividends and capital gains appropriately. Claim Foreign Tax Credits via Form 67 where applicable.
Common Mistakes to Avoid
Waiting for the right exchange rate
The rupee has depreciated in 28 of the last 32 years. Timing forex is a losing game. Invest systematically.
Concentrating in one stock or market
Buying only Tesla or only US tech does not constitute diversification. Spread across geographies, sectors, and asset classes.
Ignoring UCITS ETFs
For portfolios above $60,000 in US equities, UCITS ETFs avoid US estate tax and offer better dividend tax treatment.
Forgetting Schedule FA
Every foreign asset must be declared, even if it generated no income. Penalty for non-disclosure: up to ₹10 lakh per year.
Assuming it requires large sums
You can start with a few hundred dollars. Fractional shares mean there is no minimum to begin building global exposure.
Treating TCS as a cost
TCS is an advance tax payment, fully adjustable against your liability. It is not an additional expense on your investment.
Questions Indians Actually Ask
Your global portfolio starts with one account.
Valura is an IFSCA-registered broker-dealer offering Indian investors access to 1,00,000+ global securities. Equities, ETFs, mutual funds, bonds, REITs, and pre-IPO opportunities across multiple international markets.