The continuous depreciation of the Indian rupee is prompting Indian investors to increasingly allocate funds to global markets, particularly in the United States and Europe. This trend is fueled by the dual objectives of wealth creation and safeguarding investments against the weakening rupee.
A recent report by Vested Finance indicates a significant surge in global investments from India, climbing from $400 million to $1.6 billion in fiscal year 2025. This fourfold increase highlights a growing appetite among Indian investors for international exposure. The rupee's steady decline against the US dollar, depreciating roughly 3-4% annually for over a decade, has made global capital markets an attractive option for protecting purchasing power. On December 16, 2025, the rupee weakened to a record low of Rs 90.82 per US dollar.
Indian investors are strategically building long-term global portfolios, primarily using a mix of stocks and Exchange Traded Funds (ETFs). On average, each investor holds approximately eight different stocks. These investors are drawn to companies that are leaders in technology, supply chains, or entire markets.
Several factors contribute to the rupee's depreciation, including higher inflation in India compared to other countries, and a persistent trade deficit where imports exceed exports. A weaker rupee increases import costs, which can fuel inflation, but it can also benefit export-oriented industries by making their goods more competitive on the global market. The Reserve Bank of India (RBI) often intervenes to manage the rupee's volatility, but the long-term trend has been towards depreciation.
The shift towards global investing is not limited to India's metropolitan cities. Nearly half of these investors come from Tier II and Tier III cities, with a significant portion (48%) being under 35 years old. Many of these young investors begin with investments of less than $500, indicating a cautious entry point and a preference for learning the ropes of global markets. This demographic trend suggests that global investing is increasingly viewed as a long-term strategy, rather than a short-term trade.
When allocating their first $100, Indian investors typically favor stocks of recognizable and trusted companies. A substantial portion also goes into ETFs, which offer portfolio stability, while a smaller portion is kept as cash to manage timing or currency fluctuations. While systematic investment plans (SIPs) in global stocks are still emerging, they are gradually gaining traction.
The most popular global stock holdings among Indian investors include Tesla, Nvidia, Microsoft, Apple, Amazon, Meta Platforms, and Alphabet (Google). These companies represent high-growth sectors and are well-known brands, appealing to both new and experienced investors. Indian investors are actively diversifying their global exposure to include US equities, index and thematic ETFs and global funds. Top-owned ETFs include Vanguard S&P 500 ETF (VOO), Invesco QQQ Trust (QQQ), and iShares Semiconductor ETF (SOXX).
