Indian citizens spend billions of rupees every year on foreign travel alone. In March this year, Indians spent USD1.09 billion (about Rs 10,404 crore) on foreign travel. However, this is less than in February. According to the latest data released by the Reserve Bank of India (RBI), Indians’ spending on foreign travel in March this year decreased to USD1.09 billion, which was USD1.30 billion in February. Indians spent USD 1.65 billion on foreign travel in January.
How much did Indians spend on which class of travel?
According to RBI data, under the Liberalised Remittance Scheme (LRS), total remittances sent abroad by Indians across categories stood at USD2.59 billion in March, with travel expenditure accounting for the largest share. Under the Liberalised Remittance Scheme, resident individuals can remit up to USD250,000 in a financial year for any valid current or capital account transaction. According to the data, the ‘other travel’ category, which includes leisure travel and international credit card expenditure, accounted for USD623 million in March, accounting for about 57 per cent of total travel expenditure.
How much did it cost to buy real estate in March?
Indians spent USD450.1 million on educational travel, including tuition fees and hostel expenses. They spent USD21.3 million on business travel, pilgrimages, and medical treatment. Remittances to relatives living abroad stood at USD389.7 million in March, significantly higher than USD266.1 million in February. Expenditure in the ‘study abroad’ category declined to USD151.7 million in March from USD175.6 million in February and USD267.4 million in January. Expenditure by Indians on purchasing real estate abroad declined to USD38.6 million in March from USD51.3 million in February.
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, among other measures. With lesser overseas travel, foreign exchange outgo will reduce, and that can help in curbing rupee depreciation.
