Indians are spending more on overseas travel and education shows Reserve Bank of India data as spends rose more than 60% year on year this May just ahead of the next academic season.
Expenses on overseas travel under the Liberalised Remittances Scheme (LRS)rose 56% to $568 million in May year-on-year, while spends on education and maintenance of close relatives rose 88% to $334 million and 21% to $ 300 million, respectively, latest figures released by the RBI in its monthly bulletin showed.
These three outgo heads accounted for 80% of $1.5-billion outflows under the LRS. Under this scheme, resident Indians are allowed to spend up to $250,000 a year overseas for a certain permissible current account and capital account expenditure.
These include spends on travel abroad, education, maintenance of close relatives as well as gifts to family and friends overseas and medical expenses. In addition, certain capital account expenses like investments in overseas stock, properties, bonds and deposits are also included in this limit.
Another trend that is picking up these days is university tours by families of prospective students going overseas for undergraduate studies.