India's outward remittances under the Liberalised Remittance Scheme (LRS) declined 2% year-on-year to $28.98 billion in FY26, down from $29.56 billion in FY25, according to Reserve Bank of India (RBI) data. The decline was primarily attributed to weaker overseas education spending and reduced international travel amid broader global uncertainty. As reported by Business Standard, the international travel segment specifically dropped 2.3% YoY to $16.87 billion compared with $16.44 billion in the previous year.
Funds remitted for maintenance of close relatives and overseas education showed significant declines, with remittances for maintenance dropping 4.92% YoY to $3.53 billion and overseas education funds falling 20.9% YoY to $2.31 billion. According to Bank of Baroda's chief economist Madan Sabnavis, the decline in overseas education spending was largely attributed to new visa restrictions, especially in the United States, along with weaker job opportunities abroad. Rupee depreciation also likely led Indians to change plans to low-cost countries, further dragging down remittances for international travel. As Sabnavis noted, "This pressure is likely to continue due to geopolitical uncertainty and tightening policies in major destination countries."
Despite the overall decline, there was 56.10% growth in equity and debt investments through LRS to $2.65 billion as investors took advantage of global market opportunities. According to Business Standard, remittances under deposits increased 6.8% YoY to $705.3 million, and remittances for purchase of immovable properties surged 63.8% YoY to $528.7 million. However, these growth areas were insufficient to offset the decline in traditional remittance categories. In March 2026, investment in equity and debt grew by 43.68% YoY to $440.22 million, while medical treatment also increased by 9.52% YoY to $3.91 million.
In March 2026, overall outward remittances stood at $2.59 billion, which was 1.86% up from $2.55 billion in March 2025. According to March data, international travel, which accounted for over 50% of the entire outward remittances under the scheme, dropped 2.75% to $1.09 billion from the same year-ago period. The remittance by Indians for maintenance of close relatives was down 7.52% to $389.78 million and overseas education dropped 5.20% YoY to $151.71 million. Remittances for purchase of immovable property in the month were down by 14.24% YoY to $38.68 million, while medical treatment showed positive growth.
