Indian Residents Cut Overseas Investments by 11.9% in April, RBI Data Shows

Outward remittances by resident individuals under the Liberalised Remittance Scheme (LRS) fell to $2.29 billion in April 2026, an 11.9% decline from $2.59 billion in March 2026 and a 7.7% drop from $2.48 billion in April 2025, according to data released by the Reserve Bank of India (RBI).

The decline was primarily driven by a sharp contraction in overseas deposits and investments in equity and debt instruments, reflecting a more cautious approach by Indian residents toward international financial assets. However, spending on overseas travel rose 5.8% year-on-year to $1.16 billion, up from $1.09 billion in the same month last year.

Under the LRS, resident individuals, including minors, can remit up to $2,50,000 per financial year for permissible current or capital account transactions. These include education, travel, medical treatment, purchase of property, and investments in foreign stocks and debt instruments.

Analysts attribute the overall dip to global economic uncertainty and tighter domestic regulatory scrutiny on certain forms of overseas investments. The RBI has been gradually tightening norms to curb outflows that may impact the balance of payments. In January 2026, the central bank mandated that remittances for investments in foreign stocks and exchange-traded funds (ETFs) be routed through authorised bank channels only, limiting the use of overseas brokerage accounts.

Despite the monthly decline, cumulative outflows for the first month of the financial year 2026-27 remain in line with trends seen during the previous year. Experts expect a modest recovery in the coming months as travel demand peaks during summer holidays.

The LRS data also showed that education-related remittances remained stable, while gifts and donations to non-resident relatives witnessed a marginal uptick. The RBI continues to monitor these flows to ensure compliance with foreign exchange management norms.