Indian Investors Send Record $2.4B Abroad, Crypto Volume Hits $46B

What the numbers do show is rising participation across both channels, Sachdeva said. "What it does show is that Indian participation across different investment and digital-asset channels is growing. That, in itself, is an interesting development."

For Indian investors, overseas equities offer geographical diversification and access to sectors with limited representation in domestic markets. Those come with currency risk, market volatility, and India-specific tax and regulatory requirements. Crypto carries its own set of risks, including a tax regime that has pushed some activity offshore.

The sustained outflow through LRS, if it continues, could affect domestic market liquidity over time, though the absolute amounts remain small relative to India's total equity market capitalisation. The $603.3 million in investment remittances over two months compares with average monthly domestic equity inflows of several billion dollars through mutual funds.

Sachdeva said decisions around US equities, virtual digital assets, or any other class should depend on individual circumstances, objectives, and risk appetite. "Participation should take place through transparent, accountable and compliant systems," he added, "whether through permitted LRS channels for overseas investments or through FIU-registered reporting entities for virtual digital assets in India."

The LRS data for May showed total remittances of $2.39 billion, the highest monthly figure in the current data series and a sign that the trend is accelerating, not plateauing. The question for regulators and market participants is whether the pace of outflows will draw policy attention, especially if the rupee faces pressure or domestic markets see reduced participation from retail investors.