For decades, Indian investors were limited to local equities, mutual funds, gold, and real estate. But globalization has changed the game. Today, anyone with an internet connection and the right brokerage account can participate in Wall Street’s growth story. The question is no longer “Can Indians invest in US stocks?”—but rather “How do I get started?” This article breaks down the process clearly, helping you unlock global investment opportunities.
Why Consider US Stocks?
- Exposure to Global Leaders – Technology, healthcare, and consumer brands that shape the world.
- Portfolio Diversification – Reduces risk from being limited to the Indian economy.
- Currency Hedge – The US dollar’s strength works in your favor if the rupee weakens.
- Consistent Growth – The S&P 500 has historically delivered ~10% average annual returns.
The Legal Framework: RBI’s Liberalized Remittance Scheme (LRS)
The Reserve Bank of India (RBI) permits every resident to remit up to $250,000 per year under the Liberalized Remittance Scheme (LRS). This legal structure allows Indians to send money abroad for investments, education, or travel, making US stock investing legitimate and simple.
Step 1: Choose How to Access US Stocks
When considering how to invest in US stocks from India, you have three major routes:
- Global Brokerage Accounts – Direct access to US-listed shares and ETFs.
- Indian Brokers with Tie-Ups – Easier onboarding but with fewer choices.
- Mutual Funds/ETFs in India – Indirect access for those preferring simplicity.
Step 2: Complete KYC and Documentation
Expect to submit:
- PAN card
- Aadhaar or Passport
- Bank account details
- Proof of residence
Most online brokers have fully digital onboarding, so you can start within days.
Step 3: Funding Your Account
Funds are transferred in INR, converted into USD, and credited to your US brokerage account. For example:
- ₹83,000 = $1,000 (approx. at ₹83/USD).
⚠️ Note: Banks charge remittance fees (₹500–1,000) and a forex conversion spread (~0.5–1%), which slightly reduces the total amount credited.
Step 4: Building Your Portfolio
Sample allocation for ₹3,00,000 (~$3,600):
- ₹1.5 lakh → S&P 500 ETF.
- ₹1 lakh → Growth-oriented technology stocks.
- ₹50,000 → Healthcare & pharmaceuticals.
This ensures diversification across industries.
Step 5: Taxation Rules
- Dividends → 25% withheld in the US, then declared in India.
- Capital Gains → Not taxed in the US, but taxable in India as per applicable capital gains rules.
- DTAA → Prevents double taxation by allowing credit for US taxes already paid.
Common Mistakes to Avoid
- Putting all money in one stock.
- Ignoring tax reporting requirements.
- Overtrading, which increases forex fees.
- Forgetting long-term perspective.
Conclusion
So, can you invest in US stocks from India? Absolutely yes. With proper planning, compliance under LRS, and a diversified portfolio, Indian investors can confidently participate in global markets. Start small, stay consistent, and leverage US stock investment from India to build long-term global wealth.
