Outward remittance from travel and education accounted for the largest percentage of remittance in FY22. As Indians fly overseas with the reintroduction of foreign travel, the travel segment is quickly catching up to pre-Covid levels.
The acquisition of immovable property, deposits, loans, equity investment, sending of presents, contributions, overseas travel, care of close relatives, medical treatment, and study abroad all showed a rising tendency.
With $1968.77 million remitted in March 2022, compared to $1547.80 million on March 21, the outflow appears to be increasing. Outward remittances were over $18760.69 million in FY21, rising to $19610.77 million in FY22.
International travel for Indian clients increased as Covid restrictions loosened throughout the world. In the fiscal year ending March 2022, consumers spent $6.91 billion on travel. Though spending was significantly lower than in FY20, at over $6.95 billion, it looks to have reverted to pre-Covid levels for the time being and is projected to continue to expand fast.
Education is another area that has seen significant expansion. In FY22, Indians sent over $5.17 billion in remittances, increasing 35% from $3.83 billion in FY21. Overseas education remittances were over $5 billion in FY20. It is predicted to rise gradually as a result of favourable government regulations, the expansion of international education space, and the increased volume and value of student traffic as quality improves.
Remittances for equity and debt investments also increased, rising from $431.41 million in 2019-20 to $746.57 million in 2021-22. More cash is being created for these sorts of transactions as a result of the increasing number of Indians who aim to invest overseas and buy US equities and foreign bonds.
Indian investors see foreign equities as a wonderful way to diversify their portfolio and hold a little piece of the world’s top multinational corporations. In recent years, this has resulted in greater international investments and remittances.
Other areas, such as presents, have also seen a surge. In FY22, Indians sent $2.34 billion in gifts, up 47.28 percent from FY21.
The Reserve Bank of India’s (RBI) Liberalized Remittance Scheme guidelines control the maximum amount of remittances, which now enable any resident individual, including a juvenile, to send up to 2.5 lakh US dollars (approximately Rs 1.92 crore).
