MUMBAI: Foreign exchange spending by Indians declined by $453 million in Sept 2024 compared to Aug, primarily due to a $200 million drop in international travel.
Outward remittances under the Liberalised Remittance Scheme stood at nearly $2.8 billion in Sept, down 14% from $3.2 billion in Aug, RBI data showed. The figure is also 21% lower than the nearly $3.5 billion remitted overseas in Sept 2023.
Forex dealers attributed the fall in travel spending to seasonal factors, predicting a rebound in Dec based on booking trends. There has also been a decline in spending on international studies. Travel continues to dominate forex spending, accounting for 62% of foreign currency purchases, the same share as in Aug. A year ago, however, travel constituted only 50% of total spending.
Money spent on overseas education could dip further due to changes in immigration laws and reduced employment opportunities abroad, according to forex traders. Canada’s crackdown on study permit loopholes has also led to a significant drop in the number of students seeking admission there.