Outward remittances from India, facilitated under the liberalised remittance scheme (LRS), have surged to a new peak, reaching $29 billion during the April 2023 to February 2024 period, according to recent data published by the Reserve Bank of India (RBI).
Indians remitted a total of $29.43 billion abroad during this eleven-month period, marking a notable increase from $24.18 billion recorded in the corresponding period of the previous fiscal year. This rise follows the record high remittances of $27.14 billion witnessed in the entire fiscal year 2022-23. The trend indicates a significant recovery from the drop observed in FY21 due to the Covid-19 pandemic.
In February 2024, outward remittances amounted to $2.01 billion, representing a 23% decrease from $2.62 billion recorded in January 2024.
The drivers
During the April-February period of FY24, the international travel segment accounted for a substantial portion, rising to $16 billion, which is a 27.91% increase from $12.51 billion in the previous year. This growth was followed by funds utilised for maintenance of close relatives amounting to $4.22 billion and overseas education at $3.28 billion.
In February, remittances experienced a nearly 4% decline year-on-year from $2.1 billion in February 2023, primarily due to reduced international travel. Specifically, international travel, constituting over 50% of the entire outward remittances under the scheme, marginally dropped to $1.05 billion, a decrease of 1.6% from the corresponding period last year.
Remittances for the maintenance of close relatives amounted to $266.39 million, followed by $246.82 million for overseas education, and $233.91 million as gifts.
The LRS scheme, introduced in 2004, enables all resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination thereof, free of charge.
