Indians Spent ₹12,500 Crore/Month on Foreign Travel in 2023-24: RBI

According to a data report by the Reserve Bank of India (RBI), the outward foreign exchange remittance for Indians travelling abroad was around ₹12,500 crore ($1.42 billion) per month (on average) in 2023-24. The figure has seen a tremendous jump from pre-COVID times when it was just $400 million in 2018-19.

What RBI Says

According to RBI, under the bank’s Liberalised Remittance Scheme (LRS), a total of ₹1,41,800 crore ($17 billion) was taken out, reported The Hindustan Times. The amount saw a jump of 24.4% since last year. Feulling this came the news that Indians accounted for over 53% of total outflows for the year. The number stood at 1.5% ten years ago in 2013-14.

Additionally, around $100 million per month, on average, were invested abroad in 2023-24 by resident Indians. Remittances for ‘maintenance of close relatives abroad’ stood at $4.61 billion and education section was marked at $3.47 billion for the year.

As per RBI rules, an Indian can remit up to around ₹2.08 crore abroad a year without prior approval from the bank. Such a heightened interest in international as well as domestic travel is linked to the growth of middle classes, increased income, as well as the upliftment of COVID-19 restrictions.

“The share of maintenance of close relatives has remained around 15% over the last years. However, there has been a sharp decline in the share of gifts and education in this period,” reported The Indian Express whilst sharing insights from Bank of Baroda.