The world beyond our borders

There’s a curious paradox in Indian investing. We live in the most globally connected era, yet our portfolios remain surprisingly local. We drive German-engineered cars, stream American shows on Korean screens and work for companies serving global clients. But when it comes to investing, many act as if the world ends at the Arabian Sea and the Bay of Bengal. This isn’t entirely our fault. The Indian financial system has been designed to keep money within the country. From tax incentives that favour domestic investments to regulatory caps that limit overseas exposure, the message has been consistent. Indian savings should power Indian growth, and Indian investors should bet primarily on Indian opportunities. But India accounts for just 4.2 per cent of global market capitalisation. When we invest only domestically, we’re betting our entire financial future on roughly one-twen