International Travel Boosts Outward Remittance to $2.7 Billion in July: Business Standard

In a significant development, international travel has been identified as a major driver of outward remittance under the Liberalized Remittance Scheme (LRS), with a total of $2.7 billion being sent out of the country in July alone.

According to the latest data released by the Reserve Bank of India (RBI), outward remittances under the LRS saw a sharp increase in July, with a total of $2.7 billion being remitted by Indian nationals for various purposes such as education, medical treatment, and travel.

Of this total amount, a significant chunk was attributed to international travel, with Indian travelers splurging on foreign vacations and overseas trips. The surge in outward remittances for travel comes as no surprise, given the pent-up demand for international travel after months of lockdown restrictions due to the Covid-19 pandemic.

The LRS allows Indian residents to remit a certain amount of money abroad every year for permissible transactions, without seeking prior approval from the RBI. Under the scheme, individuals can remit up to $250,000 per financial year for various purposes, including education, medical treatment, and travel.

The increase in outward remittances for international travel reflects the growing appetite of Indian travelers to explore foreign destinations and experience different cultures. With international travel gradually resuming and travel restrictions being eased in many countries, Indian tourists are seizing the opportunity to embark on long-awaited trips abroad.

The surge in outward remittances under the LRS highlights the resilience of the Indian economy and the strong purchasing power of Indian consumers. As international travel continues to drive outward remittances, it is expected to further boost the country’s foreign exchange reserves and contribute to the overall growth of the economy.

Overall, the data indicates a positive trend in outward remittances under the LRS, with international travel emerging as a key factor driving the surge in remittances. As Indian travelers continue to venture abroad for leisure and business purposes, the outward remittance trend is likely to continue its upward trajectory in the coming months.