Summary of this article
Overseas travel remittances dropped to $1.09 billion in March
Holiday travel remained largest component of outward remittances spending
Overseas equity and debt investments increased sharply during March
Indians spent less on overseas travel in March 2026, with outward remittances for travel declining by $212.43 million month-on-month (m-o-m) to $1.09 billion, according to data from the Reserve Bank of India (RBI).
RBI’s latest data on outward remittances under the Liberalised Remittance Scheme (LRS) has revealed that travel remained the biggest component of overseas spending by resident individuals. Travel-related remittances had stood at $1.30 billion in February and $1.65 billion in January this year.
Under LRS, resident individuals, including minors, can remit up to $250,000 in a financial year for permitted current or capital account transactions.
Holiday Travel Continues To Dominate Spending
The RBI data showed that spending under the “other travel” category, which includes holiday trips and international credit card settlements, stood at $623.05 million in March. This accounted for nearly 57 per cent of total travel-related outward remittances during the month.
Education-related travel expenses, including tuition fees and hostel costs, totalled $450.16 million in March, while expenditure on overseas business travel, pilgrimage and medical treatment together stood at $21.39 million.
The decline in overseas travel spending comes amid concerns over higher oil prices and pressure on the rupee due to the ongoing conflict in West Asia. Prime Minister Narendra Modi recently urged citizens to reduce foreign travel and adopt measures, such as carpooling to help reduce fuel consumption and foreign exchange outflows.
Outward Remittances Stand At $2.59 Billion
Total outward remittances under LRS stood at $2.59 billion in March 2026. Apart from travel, remittances for maintenance of close relatives abroad increased to $389.78 million in March from $266.18 million in February.
Remittances categorised under “studies abroad”, which include payments for remote education services, such as correspondence courses offered by foreign institutions, stood at $151.71 million in March. This was lower than $175.68 million in February and $267.42 million in January.
RBI data also showed that investments by Indians in overseas equity and debt instruments rose significantly to $440.22 million in March from $265.99 million in February.
Meanwhile, spending on the purchase of immovable property abroad declined to $38.68 million in March compared to $51.36 million in February.
For the full financial year 2024-25, total outward remittances under LRS stood at $29.56 billion, with travel accounting for the largest share at $16.96 billion.
FAQs
What is the Liberalised Remittance Scheme?
The LRS allows resident individuals to remit up to $250,000 abroad in a financial year for permitted transactions such as travel, education and investments.
Why did overseas travel spending decline in March?
Travel-related remittances declined in March mainly due to lower spending on holiday travel and education-related expenses compared to previous months.
What categories are included under outward remittances?
Outward remittances include spending on travel, studies abroad, maintenance of relatives, overseas investments and purchase of property abroad.
