Summary of this article
Overseas travel spending declined before Modi’s public economic appeals
RBI data showed moderation in outbound travel remittances
Modi urged reduced imports, fuel use and foreign travel
Spending on overseas travel by Indians have moderated in FY26, even before Prime Minister Narendra Modi’s recent “nation first” appeal that called for restraint in foreign travel and discretionary imports.
According to Reserve Bank of India (RBI) data released under the Liberalised Remittance Scheme (LRS), outward remittances for overseas travel stood at $15.3 billion during April to February FY26, down around 3 per cent from $15.8 billion in the corresponding period last year.
The decline comes at a time when global uncertainty, elevated travel costs and currency pressures have begun impacting discretionary overseas spending.
RBI Data Shows Moderation In Outbound Travel Spend
Overseas travel continues to remain one of the largest components of outward remittances under the LRS framework, which allows resident individuals to remit funds abroad for purposes such as travel, education, investments and maintenance of relatives.
The moderation in spending has come after two years of robust outbound travel growth, after pandemic-related restrictions were lifted. International holidays, business and education-related travel had experienced a significant improvement over this time.
But high prices of airline tickets, high costs of hotels, and depreciation of the Indian rupee have made it more expensive for Indians to travel abroad in recent months.
PM Modi's 7 Nation First Appeal
Addressing the public at a gathering in Hyderabad, Modi asked people to avoid unnecessary foreign travels for a minimum of one year, and channel their money toward the domestic economy and tourism. Framing it within a larger narrative of economic resilience, he called on citizens to align personal choices, including travel decisions, with national priorities.
The Prime Minister also urged people to reduce fuel consumption by increasingly using public transport, adopting carpooling practices and encouraging work-from-home wherever possible. In addition, he called for a reduction in edible oil consumption, advocated a 50 per cent cut in chemical fertiliser use and promoted the use of solar-powered irrigation pumps over diesel-operated ones.
Modi further urged citizens to avoid buying gold for weddings for one year, noting India’s significant foreign exchange expenditure on gold imports.
Appeal Comes Amid Concerns Over Forex Outflows
The Prime Minister’s remarks have drawn attention because they come at a time when overseas travel spending, though moderating, still remains significantly above pre-pandemic levels.
RBI data suggests that overseas travel demand had already begun slowing before Modi’s remarks were made public, indicating that higher travel costs and global uncertainty had already been influencing consumer behaviour.
FAQs
Why did overseas travel spending fall in FY26?
Rising travel costs, global uncertainty and a weaker rupee contributed to a decline in overseas travel spending during FY26.What were PM Modi’s key appeals?
Modi urged citizens to avoid non-essential foreign travel, reduce fuel use, adopt work-from-home, use public transport, reduce edible oil consumption, cut fertiliser use and postpone gold purchases.
