MUMBAI: The tax collection at source on external remittances made from India appears to have had a dampening impact on Indians‘ spending abroad.
Total spending by Indians on external remittances in June 2024 dipped 44% to $2.2 billion compared to $3.9 billion in the year-ago period. It is also 8% lower than the $2.4 billion recorded in May.
According to RBI data, there is a consistent downward trend across key categories such as travel and studies abroad, suggesting a broader contraction in external remittances.This 44% decline in June affects major categories including travel, studies abroad, and maintenance of close relatives. Travel remittances, which form the largest share, decreased from $1.5 billion in June 2023 to $1.3 billion in June 2024. Similarly, remittances for studies abroad fell from $237 million to $177 million during the same period.
Comparing figures for May and June, there is also a decline, though less pronounced than the year-on-year comparison. Total remittances in May were $2.4 billion – about 11% higher than June’s figure. Travel-related remittances decreased from $1.4 billion in May to $1.3 billion in June, reflecting a reduction of around 9%. Remittances for studies abroad also saw a decline, falling from $211 million in May to $177 million in June.
For FY24, total outward remittances under the liberalised remittance scheme amounted to $31.7 billion. Travel was the largest component, accounting for $17 billion, followed by maintenance of close relatives at $4.6 billion and studies abroad at $3.5 billion.
Total spending by Indians on external remittances in June 2024 dipped 44% to $2.2 billion compared to $3.9 billion in the year-ago period. It is also 8% lower than the $2.4 billion recorded in May.
According to RBI data, there is a consistent downward trend across key categories such as travel and studies abroad, suggesting a broader contraction in external remittances.This 44% decline in June affects major categories including travel, studies abroad, and maintenance of close relatives. Travel remittances, which form the largest share, decreased from $1.5 billion in June 2023 to $1.3 billion in June 2024. Similarly, remittances for studies abroad fell from $237 million to $177 million during the same period.
Comparing figures for May and June, there is also a decline, though less pronounced than the year-on-year comparison. Total remittances in May were $2.4 billion – about 11% higher than June’s figure. Travel-related remittances decreased from $1.4 billion in May to $1.3 billion in June, reflecting a reduction of around 9%. Remittances for studies abroad also saw a decline, falling from $211 million in May to $177 million in June.
For FY24, total outward remittances under the liberalised remittance scheme amounted to $31.7 billion. Travel was the largest component, accounting for $17 billion, followed by maintenance of close relatives at $4.6 billion and studies abroad at $3.5 billion.