Indian Economy News

Outward remittances hit new high at US$ 29 billion in April 2023-February 2024

  • IBEF
  • April 24, 2024

According to recent data from the Reserve Bank of India (RBI), outward remittances under the liberalised remittance scheme (LRS) surged to a new high of US$ 29 billion during the April 2023-February 2024 period, marking a notable increase of 21.7% compared to the same period in the previous year. This uptrend reflects a consistent recovery since FY22, following a decline in FY21 due to the COVID-19 pandemic. The entire FY23 witnessed a record high of US$ 27.14 billion in remittances, indicating a sustained upward trajectory. Notably, in February 2024, outward remittances slightly decreased by 23% to US$ 2.01 billion compared to January 2024, primarily attributed to a decline in international travel expenditures.

The breakdown of outward remittances during the April-February period of FY24 reveals significant allocations towards international travel, which soared to US$ 16 billion, marking a substantial 27.91% increase from the previous year. This growth was followed by funds allocated for the maintenance of close relatives and overseas education, amounting to US$ 4.22 billion and US$ 3.28 billion, respectively. However, despite the overall surge in outward remittances, February 2024 witnessed a slight decline of nearly 4% year-on-year, primarily attributed to reduced spending on international travel. Nonetheless, the LRS scheme, introduced in 2004, continues to facilitate resident individuals to remit up to US$ 250,000 per financial year for permissible current or capital account transactions, reflecting its enduring relevance in facilitating international transactions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.