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Overseas travel spending by Indians, including holiday trips, declined by USD 212.43 million to USD 1.09 billion in March compared to February, according to the Reserve Bank data. The outward remittances for travel were at USD 1.3 billion in February and USD 1.65 billion in January this year. The RBI data on 'Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals' shows overseas spending by Indians under different categories, including travel, maintenance of close relatives, studies abroad, investments in equity and debt. Under the LRS, resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April-March) for any permissible current or capital account transaction or a combination of both. Against the backdrop of the West Asia conflict pushing oil prices higher and pulling down the rupee to record lows, Prime Minister Narendra Modi has urged people to reduce foreign travel and opt for carpooling,
The Indian Association of Tour Operators (IATO) on Sunday reported a noticeable rise in booking cancellations and rescheduling requests, particularly for sectors connecting India with Europe via major Gulf hubs, due to airspace restrictions arising from the Middle East crisis. IATO President Ravi Gosain told PTI that travel agents across the country are working closely with airlines and overseas partners to minimise inconvenience to passengers by facilitating re-bookings, refunds, and alternate routings. "While there is short-term uncertainty, we expect the situation to stabilise, and travellers are being advised to stay in touch with their agents and avoid panic cancellations, as airlines are offering suitable options in most cases," he said. The conflict between Israel, the US, and Iran has resulted in multiple airspace closures in the Middle East, massively disrupting flight operations.