Outward remittances under LRS hit new high of US$ 31.73 billion: RBI data

India's outward remittances under the Liberalised Remittance Scheme (LRS) reached a new high of US$ 31.73 billion in FY24, driven by robust growth in the international travel segment. According to the latest data from the Reserve Bank of India (RBI), this marks a 16.91% year-on-year increase from the previous record of US$ 27.14 billion in FY23. Over the past decade, continuous growth in remittances has been driven by rising per capita income, reflected in increased spending on travel, overseas education, and other segments. After a sharp decline in FY21 due to the COVID-19 pandemic, remittances recovered in FY22 and continued to rise, spurred by 'revenge spending' and the release of pent-up demand.

International travel remittances surged to US$ 17 billion in FY24, a 24.84% increase from US$ 13.66 billion in the previous year. This growth was followed by funds for maintaining close relatives and overseas education, which reached US$ 4.61 billion and US$ 3.58 billion, respectively. A chief economist at Bank of Baroda, anticipates continued growth in remittances due to rising income levels, which will likely sustain the upward trend in travel and boost overseas education. Additionally, equity and debt investments through LRS grew by 20.29% year-on-year to US$ 1.51 billion, as investors capitalized on global market opportunities. In March 2024, overall outward remittances were US$ 2.30 billion, 22.13% lower than US$ 2.95 billion in March 2023, with international travel accounting for over 50% of these remittances.

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