A Structural Shift in Indian Wealth
Indian investors have moved past a decade-long preference for domestic assets. For years, strong local market performance kept offshore investment in the category of theory rather than practice. That period ended recently. A combination of a softer rupee, two stagnant years for Indian equities, and the emergence of specific global themes without domestic equivalents has pushed international diversification to the top of family office agendas. Anuj Kapoor, Managing Director and CEO for Private Wealth at JM Financial Services Limited, presented a clear assessment during the Hubbis India Wealth Management Forum 2026. He argues the shift is structural rather than cyclical. It will outlast the current currency cycle because the primary constraints on this behavior are regulatory rather than a lack of desire among wealthy families.
Moving from Interest to Standard Practice
Kapoor describes a sharp increase in how frequently his firm discusses offshore diversification with clients. A few years ago, perhaps five out of ten family offices wanted to discuss taking wealth offshore. Today, that number sits at nine out of ten. This shift is not just a reactive play to a weaker rupee. It represents a fundamental change in how Indian families manage their balance sheets. Families that have made an initial offshore allocation rarely view it as an experiment. Instead, they treat it as a permanent pillar of their portfolio. The psychological barrier to investing abroad has fallen alongside the rise of globalized lifestyles, where children often study overseas and consumption habits have become international.
Product Access and the Limits of Domestic Markets
The most significant driver of this trend is the lack of specific thematic exposure within India. Artificial intelligence dominates current client conversations. Investors want to own pieces of the semiconductor supply chain, but these companies rarely exist on the Indian exchanges. Kapoor notes that the quality and variety of global financial products are simply not available domestically. This creates an objective need for offshore access. Wealth built entirely within a single market carries heavy concentration risk. Families now recognize that, regardless of how well their home market has performed in the past, their future stability requires global exposure. Liquidity events, such as private equity buyouts or company listings, provide the fresh capital that families now look to deploy beyond Indian borders.
GIFT City and Regulatory Realities
The International Financial Services Centre at GIFT City occupies a complex position in this evolution. While the jurisdiction is designed to be progressive, it currently faces a maturation period. Kapoor remains constructive about its future, but he emphasizes that it currently needs time to stabilize its regulatory regime. Importantly, he clarifies that the center was never intended as a primary tool for individuals to externalize wealth. Its most successful function has been facilitating capital inflows into India. Asset managers and advisory firms have set up offices there, but families seeking direct offshore structures still look to established international routes. For now, the regulatory ceiling on individual outbound investment remains the tightest bottleneck.
The Durability of Global Allocation
Looking ahead, Kapoor expects the specific themes within global portfolios to rotate. While the United States and AI represent the current focus, the underlying trend remains durable. Three years from now, Japan or Europe might emerge as the preferred themes, yet the demand for access will stay consistent. This long-term outlook forces a change in the wealth management industry. The era where advisers had to persuade clients to consider global exposure has ended. Today, the challenge lies in delivery. Providing compliant, well-structured, and durable solutions within the current legal framework is now the central task for firms serving India's wealthiest individuals.