Indians sent $27.14 bn abroad under LRS in FY23, up nearly 40% YoY

Reflecting buoyancy in travel and spending on relatives, outward remittances surged substantially for the second year on the trot

Indians remitted about $27.14 billion in the financial year ended March 2023 under the Reserve Bank of India’s (RBI’s) liberalised remittance scheme (LRS), latest data released by the central bank showed.

Reflecting buoyancy in travel, spending on relatives, the outward remittances saw a substantial jump for the second year on the trot. Indians had remitted $19.61 billion in FY22, up from $12.68 billion in FY21, when there was a sharp dip in remittances during the first phase of the Covid pandemic. In FY20, Indians had sent $18.76 billion abroad.

Remittances in March 2023 alone stood at $2.95 billion, up from $1.96 billion in March 2022 and $2.1 billion in February 2023.

International travel remained the largest component of the entire outward remittance by Indians under the scheme. Spending on foreign travel hit $1.14 billion in March. In 2021, it was marred by Covid-related curbs but slowly picked up later and remained strong in 2022 and early 2023.

The next highest expenditure was maintenance of close relatives, at $630 million, followed by investment in debt and equity, at $232 million this March, RBI data showed.

After international travel, Indians spent most on maintenance of close relatives, followed by gifts, investment in equity and overseas education.