Millions of Indians are opting to explore destinations abroad in large numbers now more than ever before according to the recent data released by the Reserve Bank of India. The statistics show that the amount utilized by residents for expenses related to travel outside the country has surged to almost 3.5 times in the past 5 years.
As per the figures, Indians spent a total of $17 billion in the fiscal year 2023-24 for overseas trips using the RBI's Liberalized Remittance Scheme. This marks a sizeable year-on-year increase of 24.4% from the previous year's amount of $13.66 billion. Travel has now emerged as the top category accounting for remittances outward from the nation constituting 53.6% of total outflows in the last financial year.
The monthly average sum utilized for foreign voyages has jumped to nearly $1.42 billion in the last year from just $400 million seen five years back. This uptrend results from factors like improving disposable earnings and increasing exposure to global travel opportunities among middle-class households after Covid restrictions were rolled back.
Besides travel, residents also sent more funds abroad moderately for purposes like maintaining family living overseas and children's education. Overall, the total outward remittances under the LRS rule set another new high of $31.73 billion in 2023-24 compared to $27.14 billion in the year before, marking a rise of 16.91%.
Experts note that while expenditures for vacations abroad and cost of living for relatives continue to be major components, the share of gifts and donations overseas has reduced significantly in the past decade indicating lifestyle changes. With growing prosperity and digital exposure, international travel is clearly becoming a priority for many Indian citizens within their budget in recent times.
