To understand this better, it helps to look at how Indian households invest.

India has close to 30 crore households. According to regulatory surveys, only around 9 to 10% of households actively invest in securities markets such as stocks and mutual funds. A few years ago, the figure was closer to 5%, so participation has increased, but it remains limited.

Within this investing group, global exposure is still extremely small. Estimates suggest that only about 2–3% of Indian equity investors have any meaningful exposure to international markets, which translates to roughly 2–3 million investors.

Compare that with the domestic side. India today has well over 80–100 million people participating in the stock market, with more than 150 million demat accounts opened across exchanges and depositories.

In simple terms, for every 100 Indians investing in equities, only about 2–3 invest globally, while the overwhelming majority remains invested only in domestic markets.

Source: The Financial Express

That means that even among investors, almost all investments remain within India.

At the same time, household wealth in India is largely concentrated in real estate and physical assets. Bank deposits continue to be one of the most preferred savings options. Mutual funds and equities have grown meaningfully over the last decade, but for most families they form only part of the total wealth picture.

So it is is very clear that the participation is rising, but exposure is still overwhelmingly domestic.