Mains Answer Writing - 7 Nov, 2026

GS3

Economy

10 marks

Why are Indians increasingly investing in foreign markets? Discuss the implications of rising overseas investments for the Indian economy.

Tips for your answer

  • Balance the benefits of global diversification against capital outflows and exchange-rate pressures.
  • RBI's Liberalised Remittance Scheme (LRS) permits resident individuals to remit up to $250,000 annually for permitted transactions.
  • Do not confuse overseas portfolio investments by individuals with outward FDI by Indian companies.

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