Outward remittances under LRS decline 11.9% in April as overseas investments slow
The fall in outward remittances was driven by sharp contraction in overseas deposits and investments in equity, debt instruments
Resident individuals remitted $2.29 billion under the Liberalised Remittance Scheme (LRS) in April 2026, marking an 11.9% decline from $2.59 billion recorded in March 2026 and $2.48 billion in April last year.
The fall in outward remittances was driven largely by a sharp contraction in overseas deposits and investments in equity and debt instruments, reflecting a more cautious approach by Indian residents toward international financial assets.
Under the LRS of the Reserve Bank of India (RBI), resident individuals, including minors, can freely remit up to $2,50,000 per financial year for permissible current or capital account transactions. These transactions include education, studies abroad, travel, medical treatment abroad, purchase of property and investments in foreign stocks.
Data released by the RBI for April 2026 showed that remittances for deposits abroad fell to $94.79 million from $176.35 million in March 2026, a steep decline of 46.2%.
Similarly, investments in overseas equity and debt instruments dropped by 45.8% year-on-year (y-o-y) to $238.63 million from $440.22 million. Together, these categories accounted for the largest reductions in remittance outflows during the month.
Despite the overall slowdown, travel continued to dominate outward remittances. Spending on overseas travel rose 5.8% y-o-y to $1.16 billion, up from $1.09 billion in March.
Travel alone accounted for roughly 51% of total remittances under the scheme, underlining the continued strength of international tourism and business travel among resident Indians.
According to data from the RBI, spending on overseas holiday travel and payments made to settle international credit card transactions recorded a notable increase between March and April this year.
Such expenditures rose from $623.05 million in March to $686.65 million in April, reflecting stronger outbound travel activity and higher overseas spending by Indian residents.
The increase suggests growing demand for international leisure travel, as well as a rise in cross-border transactions conducted using international credit cards during the period.
Another notable exception to the broader declining trend was the purchase of immovable property overseas. Remittances for property acquisitions increased by 27.2% y-o-y to $49.21 million, compared with $38.68 million in March. The rise suggests that interest in overseas real estate investments remained resilient even as financial investments moderated.
Travel-related spending for education, including tuition fees and hostel expenses, declined from $450.16 million in March to $439.3 million in April, RBI data shows.
Other education-related remittances also weakened during the month. Transfers for studies abroad fell 11.2% to $134.75 million from $151.71 million. The moderation indicates softer spending on overseas education compared with previous periods.
Resident individuals remitted $2.29 billion under the Liberalised Remittance Scheme (LRS) in April 2026, marking an 11.9% decline from $2.59 billion recorded in March 2026 and $2.48 billion in April last year.
The fall in outward remittances was driven largely by a sharp contraction in overseas deposits and investments in equity and debt instruments, reflecting a more cautious approach by Indian residents toward international financial assets.
Under the LRS of the Reserve Bank of India (RBI), resident individuals, including minors, can freely remit up to $2,50,000 per financial year for permissible current or capital account transactions. These transactions include education, studies abroad, travel, medical treatment abroad, purchase of property and investments in foreign stocks.
Data released by the RBI for April 2026 showed that remittances for deposits abroad fell to $94.79 million from $176.35 million in March 2026, a steep decline of 46.2%.
Similarly, investments in overseas equity and debt instruments dropped by 45.8% year-on-year (y-o-y) to $238.63 million from $440.22 million. Together, these categories accounted for the largest reductions in remittance outflows during the month.
Despite the overall slowdown, travel continued to dominate outward remittances. Spending on overseas travel rose 5.8% y-o-y to $1.16 billion, up from $1.09 billion in March.
Travel alone accounted for roughly 51% of total remittances under the scheme, underlining the continued strength of international tourism and business travel among resident Indians.
According to data from the RBI, spending on overseas holiday travel and payments made to settle international credit card transactions recorded a notable increase between March and April this year.
Such expenditures rose from $623.05 million in March to $686.65 million in April, reflecting stronger outbound travel activity and higher overseas spending by Indian residents.
The increase suggests growing demand for international leisure travel, as well as a rise in cross-border transactions conducted using international credit cards during the period.
Another notable exception to the broader declining trend was the purchase of immovable property overseas. Remittances for property acquisitions increased by 27.2% y-o-y to $49.21 million, compared with $38.68 million in March. The rise suggests that interest in overseas real estate investments remained resilient even as financial investments moderated.
Travel-related spending for education, including tuition fees and hostel expenses, declined from $450.16 million in March to $439.3 million in April, RBI data shows.
Other education-related remittances also weakened during the month. Transfers for studies abroad fell 11.2% to $134.75 million from $151.71 million. The moderation indicates softer spending on overseas education compared with previous periods.
