Indian Overseas Investments Rise 2,800% Over Past Decade as Citizenship Renunciations Increase

Indian residents are sending money abroad at unprecedented rates, with total remittances under the Liberalised Remittance Scheme (LRS) skyrocketing from $1.1 billion in 2014 to $31.7 billion in 2024 – a staggering 2,808% increase over the decade. Indian overseas investments rise significantly during this period, reflecting a growing trend of individuals seeking international investment opportunities.

This dramatic surge in overseas remittances coincides with a growing number of Indians giving up their citizenship. In 2023, more than 216,000 Indians relinquished their passports, representing a 65% increase from a decade ago.

Remittance Effect on International Property Investment

The transformation in remittance patterns became particularly pronounced following India's 2016 demonetisation initiative. Travel-related remittances witnessed the most dramatic growth, increasing from a modest $16 million in 2014 to $17 billion in 2024 – a remarkable 106,000% rise.

Investment preferences have also shifted significantly. By 2024, overseas investments in equity and debt instruments reached $1.5 billion, while property purchases abroad grew to $243 million. Bank deposits overseas similarly expanded, reaching $916 million in 2024.

Despite a temporary setback during the COVID-19 pandemic, when total remittances dropped by 32.4% in fiscal year 2021, the recovery has been robust. Current trends suggest continued growth, with the first four months of fiscal year 2025 already recording $9.6 billion in total remittances.

Under the current LRS framework, Indian residents can remit up to $250,000 per person annually for various purposes, including education, medical treatment, property purchase, and investments in foreign markets.