ECONOMY
Wanderlust Indians splurge over half of overseas spending on travel in FY24
- IBJ Bureau
- May 28, 2024
Indians have spent a record $31.7 billion under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) in FY24, an increase of 17 per cent on year.
The bulk of the spending – $17 billion or 53 per cent of the total – was on account of foreign travel, followed by spending on maintenance of relatives at $4.6 billion.
The share of travel in the total spending under LRS has risen sharply from 3.5 per cent in FY12 to 37 per cent in FY20 and 50 per cent in FY23. Indians have spent $3.6 billion on gifting friends or relatives residing abroad and $3.5 billion for studying abroad in the last financial year.
They have also invested $1.5 billion under the LRS scheme in FY24. Under the LRS, all resident individuals are allowed to remit up to $2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.
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