India outward remittances reach $2.39 billion under LRS

Indian investors are increasingly utilizing the Liberalised Remittance Scheme (LRS) to move capital into overseas equities and alternative assets. In May 2026, total outward remittances under the LRS reached $2.39 billion, with remittances specifically for equity and debt investments more than doubling to $363.6 million compared to the previous year.

This trend toward international diversification is driven by downturns in domestic equity markets and a desire to access sectors with limited representation in India. Additionally, retail cryptocurrency transaction volumes in India reached approximately $46 billion in the first quarter of 2026.

As these financial flows increase, the Indian Income Tax Department is closely monitoring transactions. Remittances are reportable events under Indian tax and foreign exchange laws, and mismatches between taxpayer filings and departmental data can trigger reassessment notices. Under the LRS, resident individuals are permitted to transfer up to USD 250,000 per financial year for purposes such as education, medical treatment, travel, and investment.