The amount of money Indians invested in foreign securities, property, and deposits in 2022 touched a record high, noted a report by Business Standard.
At $2.1 billion, it was the largest overall spend for any 12-month period according to the Reserve Bank of India’s (RBI’s) data going back over a decade, said the report.
Meanwhile, investments in foreign equity or debt hit a record-high of $969.5 million for the rolling 12-month period ended December, informed BS. The monthly figure of $119.58 million for December was also the highest on record, amid a significant increase in interest in foreign stocks, it added.
The government allows Indians to spend $250,000 for various purposes abroad under the liberalised remittance scheme (LRS). This can also be used for education, medical expenses, gifts, donations, travel and maintenance of close relatives or other purposes, in addition to the investments mentioned above. Data for investments is available in a continuous form since April 2011.
A large number of brokerages have had tie-ups that allow their clients to hold shares in companies like Google parent Alphabet, Microsoft, and Amazon. A number of investors have also invested in such companies through the mutual fund route, informed BS.
The report also mentioned that the value of MF holdings in foreign equities was in excess of ₹27,055 crore as of December. The data for January showed the value of MF holdings in foreign securities had risen to ₹29,012 crore.
Meanwhile, immovable property investments amounted to at least $100 million on a 12-month rolling basis since December 2021. The latest figure of $157.6 million in December 2022 was also a record, noted BS.
However, Regulatory curbs have affected MFs’ ability to take more exposure to foreign securities. Additionally, a government provision to introduce a 20 percent tax deduction at source for remittances over a certain sum is also reportedly expected to be a dampener for investments abroad, cautioned BS.
