Indians sent US$ 27.14 billion abroad under LRS in FY23, up nearly 40% YoY
- IBEF
- May 23, 2023
Indians remitted about US$ 27.14 billion in the financial year ended March 2023 under the Reserve Bank of India’s (RBI’s) liberalised remittance scheme (LRS), latest data released by the central bank showed.
The outward remittances showed a significant increase for the second year in a row, reflecting growth in travel and spending on family. Indian remittances increased to US$ 19.61 billion in FY22 from US$ 12.68 billion in FY21 during the first phase of the Covid epidemic, which caused a dramatic decline in remittances. Indians sent US$ 18.76 billion abroad in FY20.
Remittances totalled US$ 2.95 billion in March 2023, up from US$ 2.1 billion in February 2023 and US$ 1.96 billion in March 2022.
The majority of all outward remittances sent by Indians under the programme were still accounted for by international travel. In March, travellers spent US$ 1.14 billion abroad. It was negatively impacted by curbs connected to Covid in 2021, although it later caught up and continued to be robust in 2022 and early 2023.
The next highest expenditure was the maintenance of close relatives, at US$ 630 million, followed by investment in debt and equity, at US$ 232 million this March, RBI data showed.
After international travel, Indians spent most on the maintenance of close relatives, followed by gifts, investment in equity and overseas education.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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