Overseas travel spending by Indians falls to $1.09 billion in March: RBI

The Reserve Bank of India (RBI) data showed Indians’ overseas travel spending fell to $212.43 million to $1.09 billion in March compared to February. The outward remittances for travel were at $1.3 billion in February and $1.65 billion in January this year. Data showed that total outward remittances stood at $2.59 billion in March 2026, of which travel accounted for the largest share at $1.09 billion. The travel category under the LRS has been classified into business travel, pilgrimage, medical treatment, travel for education, and ‘other travel’.

The RBI data on ‘Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals’ shows overseas spending by Indians under different categories, including travel, maintenance of close relatives, studies abroad, investments in equity and debt.

The data showed that Indians spent $623.05 million under the ‘other travel’ category, which includes holiday trips and international credit card settlements, during March. It accounted for nearly 57 per cent of the total travel outgo of $1.09 billion.  Spending on education-related travel (including fees, hostel expenses) totalled $450.16 million in March, while expenditure on overseas business travel, pilgrimage and medical treatment totalled $21.39 million.

The RBI data also showed that outbound remittances under the LRS towards maintenance of close relatives stood at $389.78 million in March, higher than $266.18 million in February.

Further, the overseas spending under the head ‘studies abroad’, which includes transaction when an individual avails education services remotely without travelling abroad, such as fees for correspondence courses abroad, stood at $151.71 million in March, lower than $175.68 million in February and $267.42 million in January.

The decline comes at a time when the Government has flagged concerns around rising outward remittances and the pressure they place on India’s foreign exchange outgo, particularly under the LRS. Overseas travel remains one of the largest components of outward remittances by resident Indians.

Under the LRS, resident individuals, including minors, are allowed to freely remit up to $2,50,000 per financial year (April-March) for any permissible current or capital account transaction or a combination of both.

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.

Total outward remittances under the LRS during 2024-25 stood at $29.56 billion, of which travel accounted for the largest share at $16.96 billion.

The data also showed that Indians invested $440.22 million in equity and debt instruments in March, significantly higher than $265.99 million in February.

Spending on the purchase of immovable property overseas stood at $38.68 million, down from $51.36 million in February.