According to latest data by 1Lattice (Prev. PGA Labs), the outward remittances from India has witnessed a growth of about 34 per cent, m-o-m in June 2023. For the past 3 years, overseas travel and leisure has had the highest share in outward remittances from India.
The month of June has recorded outward remittances worth USD 3.9 billion, with travel holding the majority share of 38 per cent, followed by family maintenance of 23 per cent, gifts at 17 per cent, investment in equity/debt and education holding a 8 per cent share and 6 per cent share respectively, the data highlighted.
Outward remittance towards investment on debt/equity witnessed an uptick of about 195 per cent m-o-m, in June 2023, in comparison to uptick of 30 per cent in May, 2023.
The Indian government has recently raised the tax collection at source (TCS) rate on foreign remittances under the Liberalised Remittance Scheme (LRS) from 5 percent to 20 percent, which has been effective since July 1, 2023.
According to data released by the Reserve Bank of India (RBI), outward remittances under the RBI’s Liberalised Remittances Scheme (LRS) shot up to USD 3.89 billion (Rs 32,000 crore) in June as against USD 2.88 billion (Rs 23,900 crore) in May this year. LRS outflows in June 2022 were just USD 1.98 billion (Rs 16,430 crore).
In the nine-month period between April and December (FY23), remittances under this scheme have touched USD 19.35 billion, which is almost equal to the total amount remitted under this scheme in the whole of FY22.
The LRS allows resident Indians to transfer funds abroad without restrictions, up to a specified limit.
Outward remittances recorded in FY20 was USD 18 billion, in FY21 it was USD 12 billion and in FY22 it was a whopping USD 19 billion. In January and February 2023, the numbers recorded were USD 2.7 billion and USD 2.1 billion, said the 1Lattice data.
