Why Indians Are Eyeing the US Stock Market
How to Invest in US Stocks from India is now a practical goal for many. Imagine buying a slice of Apple, Amazon, or Google right from your home in India.
With the rise of digital platforms and liberalized investment regulations, Indians today are no longer confined to Dalal Street. Wall Street is just a few clicks away.
As per RBI’s Liberalised Remittance Scheme (LRS) data, Indian investments in foreign equities have doubled since 2020, signaling a growing interest in global diversification.
But how exactly can you invest in US stocks from India? What are the steps, risks, taxes, and platforms involved? This blog will break it all down for you in a beginner-friendly format on how to invest in US stocks from India safely and smartly.
And just to inspire you, here’s a quick story:
User Story: “I started with ₹10,000 in Tesla using Vested while sitting in Pune,” says Aarav Desai, a 26-year-old tech analyst. “In just one year, that small bet grew by 20%, and now US stocks are 25% of my portfolio.”
🗽Why Invest in US Stocks?
🌍Diversification of Risk
Investing in the US market helps diversify across global economic cycles. While Indian stocks may dip during domestic events, US stocks might remain stable or grow.
💼Exposure to Global Giants
Companies like Tesla, Microsoft, Netflix, and Meta are not listed in India. By investing in the US, you get access to these tech giants.
📈Consistent Long-Term Growth
Over the last 10 years, the S&P 500 has offered an average annual return of about 12%, outperforming many Indian mutual funds.
🔍Is It Legal to Invest in US Stocks from India?
Absolutely. Under RBI’s Liberalised Remittance Scheme (LRS), every Indian resident is allowed to invest up to $250,000 per financial year in foreign assets, including stocks.
You’ll need to go through compliant platforms or brokers who follow RBI and SEBI regulations.
🛠️How to Invest in US Stocks from India — Step-by-Step
🏦1. Choose a Platform
You have two types of platforms to consider:
a. Indian Platforms with Tie-Ups
These platforms partner with US brokers to offer Indian investors direct access.
Examples: Groww, INDmoney, Vested, Kuvera.
b. Global Brokerage Accounts
You open an account with international brokers.
Examples: Interactive Brokers, Charles Schwab.
🧠 Expert Insight: “Beginners should start with Indian platforms due to easier KYC and INR-to-USD conversions,” says Rakesh Mehta, a certified financial advisor at FinWise India.
🔍2. Complete KYC and Compliance
Most platforms require basic KYC: PAN, Aadhar, and bank details. Some may ask for Form A2 under LRS for fund transfers.
💳3. Fund Your Account
You can transfer money in USD from your Indian bank account via international remittance. Banks like HDFC, ICICI, and Axis support this through net banking.
Typical charges:
- Forex conversion fee: ~1.5–2%
- SWIFT charges: ₹500–₹1,000
- GST on charges: 18%
🔧 Tip: Try using a forex-efficient bank like IndusInd or IDFC First, known for lower markup charges on USD transfers.
📈4. Buy US Stocks or ETFs
Once your account is funded, you can buy:
- Individual stocks like Apple (AAPL) or Amazon (AMZN)
- Fractional shares if you’re low on budget
- US ETFs (like VOO or ARKK) for diversification
🛠 Tool: Try out the Global Investing Calculator to simulate your returns based on time, platform charges, and USD/INR rates.
🧳️5. Taxation on US Stocks for Indian Investors
a. Capital Gains Tax
- Long-term (held >24 months): Taxed at 20% with indexation
- Short-term: Taxed as per your income slab
b. Dividend Tax
- 25% tax deducted at source in the US
- You can claim foreign tax credit when filing Indian returns under the DTAA (Double Tax Avoidance Agreement)
💸Cost of Investing in US Stocks from India
| Cost Element | Estimated Range |
|---|---|
| Account opening | Free to ₹500 |
| Forex conversion | 1.5% to 2.5% |
| Brokerage | $0–$5 per trade |
| Remittance charges | ₹500–₹1,000 |
| Annual maintenance | Some platforms charge |
💡 Tip: Use a platform that offers zero-commission trades and low forex markup to maximize returns.
📊Example — Investing ₹1 Lakh in US Stocks
Let’s say you invest ₹1,00,000 (~$1,200) in Apple Inc. in June 2024.
By June 2025, if Apple stock grows by 10%, your holding becomes ~$1,320.
After forex conversion and taxes, you might net ~₹1,08,000 — a healthy return when compared to many Indian savings options.
🌞Real-World Comparisons — US vs Indian Stocks
🌟 Example 1: Netflix vs Zee Entertainment
- Netflix (NFLX) returned ~18% in the past year (as of April 2025), driven by global subscriber growth and AI-driven content recommendations.
- Zee Entertainment, while stable in the Indian market, faced consolidation uncertainty and gave ~6% return.
- ✅ Verdict: Netflix provided a more attractive growth curve for long-term global investors.
🌟 Example 2: Nvidia vs Infosys
- Nvidia (NVDA) delivered a massive ~80% return due to its dominance in AI chips and data center GPUs.
- Infosys, a blue-chip Indian IT stock, offered ~12% return over the same period.
- ✅ Verdict: Nvidia’s innovation and scale in emerging technologies offered higher returns, albeit with more volatility.
🌟 Example 3: Amazon vs Reliance Retail (via RIL)
- Amazon’s diversified global e-commerce and AWS growth gave it a ~20% return in the last year.
- Reliance Retail, through RIL, also expanded rapidly and delivered a ~23% return, powered by JioMart and digital growth.
- ✅ Verdict: While Amazon offers global exposure, Reliance Retail presents strong domestic growth. A balanced portfolio can include both.
🌟 Example 4: Nvidia vs Tata Elxsi
- Nvidia is the undisputed leader in AI hardware and saw ~45% CAGR from 2020–2024.
- Tata Elxsi, known for software-led innovation in auto and healthcare, showed ~29% CAGR.
- ✅ Verdict: Nvidia is a higher-risk, high-reward stock; Tata Elxsi is stable with consistent niche innovation.
🚰Risks to Be Aware Of
📉 Currency Risk
If the rupee strengthens against the dollar, your returns could decrease.
🌐Geo-Political and Regulatory Risks
Changes in US regulations, global crises, or political shifts can affect your investments.
📟Double Taxation
Though DTAA helps, tax filing for foreign income can be more complex.
🪿Advanced Options After You Gain Experience
- Invest in US REITs for real estate exposure
- Use Robo-Advisors with global allocations
- Explore Thematic ETFs like AI, clean energy, or blockchain
🧐 Expert Tip
“Investing globally should be a part of your asset allocation, not a replacement for Indian investments,” recommends Meenal Gupta, Portfolio Manager at GlobalVest Advisors.
“Think global, act local. While US stocks give you scale and tech leadership, Indian markets offer unmatched demographic potential,” adds Harsh Vora, founder of FinSage Capital.
🚒Should You Start Investing in US Stocks?
If you’re looking to diversify your portfolio, access high-growth sectors, and gain global exposure, US stocks are a great option — even from India. With digital platforms simplifying the process, starting has never been easier.
👉 Call to Action:
Ready to invest in the US market from India? Start with a trusted platform, begin with small amounts, and always consult a financial advisor for personalized guidance.
❓ FAQs on Investing in US Stocks from India
1. Can NRIs invest in US stocks from India?
NRIs can invest in US stocks, but it’s better for them to use their foreign bank accounts directly instead of routing through Indian platforms.
2. How much money can I invest in US stocks annually?
Under RBI’s LRS, you can invest up to $250,000 per financial year.
3. Do I need a US bank account?
No. Most platforms allow you to invest using INR, which gets converted during the transfer.
4. Are fractional shares legal in India?
Yes. Many platforms now allow you to legally own fractions of expensive US stocks.
5. How do I report US stock income in Indian ITR?
You must declare capital gains and dividends in Schedule FA of your Indian ITR2 or ITR3.
📚 Related Reading You’ll Find Useful:
- 💡 New to small-cap investing? Don’t miss our guide on Penny Stocks: A Beginner’s Guide to Smart Trading and Market Insights — Understand risks, strategies, and how to spot the right opportunities.
- 🏢 Interested in government-backed companies? Explore PSU Stocks in India: Complete Guide to the Best Public Sector Stocks for 2025 to learn which public sector units might power your portfolio.
- 🪙 Want to hedge against market volatility? Check out The Ultimate Guide to Gold ETFs: A Smart Investor’s Guide — An easy way to invest in gold without holding physical assets.
“An investment in knowledge pays the best interest.” — Benjamin Franklin
