Overseas spending by Indians is easing

India's outward remittances declined to $28.98 billion in FY26.

India’s outward remittances under the Liberalised Remittance Scheme have begun slowing down after the post-pandemic surge. According to data from the Reserve Bank of India, Indians sending money abroad increased sharply from $19.61 billion in FY22 to a record $31.73 billion in FY24 before easing to $28.98 billion in FY26.

The biggest decline was in overseas education spending. Indians sending money abroad for studies fell to $2.31 billion in FY26 after touching $3.48 billion in FY24, and is now less than half the $5.2 billion recorded in FY22.

The moderation comes amid tighter student visa rules in countries such as the United States of America and Australia, alongside a weaker rupee that has made overseas education significantly more expensive for Indian households.

A similar pattern is visible in foreign travel spending. Indians’ foreign travel spend surged from $6.9 billion in FY22 to nearly $17 billion in FY24 as international tourism rebounded after Covid-19 restrictions. But it declined slightly to $16.4 billion in FY26.

Money sent abroad for the maintenance of relatives and gifts also rose sharply after the pandemic before moderating in recent years. Combined outflows in the category increased from $5.6 billion in FY22 to $8.2 billion in FY24 before falling to $6.1 billion in FY26.

Even as spending-linked remittances slow, overseas investments continue to rise steadily. Equity and debt investments increased from $0.75 billion in FY22 to $1.5 billion in FY24, and further to $2.7 billion in FY26.

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