Outward remittances under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) dropped by 14.88% year-on-year (Y-o-Y) in the first half of FY25 (April–September).
As per the RBI’s September bulletin, remittances fell to $15.61 billion in H1 FY25. This was a decrease from $18.34 billion in the same period of FY24.
Sharp Drop in Key Categories
Remittances for maintaining close relatives saw a major drop. They declined by 37.17% Y-o-Y to $1.92 billion, compared to $3.05 billion a year ago.
Funds sent for overseas education also reduced. They fell by 12.83% Y-o-Y to $1.60 billion from $1.84 billion in H1 FY24.
Slight Decline in Travel Remittances
International travel remained the largest category, making up 57% of total remittances under LRS. However, this segment also saw a small dip. It fell by about 1% Y-o-Y to $9.20 billion from $9.30 billion.
Other Categories Also Fell
Remittances for buying immovable property dropped by 9.38%. The amount fell to $136 million from $150 million.
Investments in equity and debt markets declined significantly. They were down by 19.09% Y-o-Y to $699.26 million, compared to $864.32 million in the previous year.
Significant Drop in Gifts and Deposits
There was also a noticeable fall in remittances for gifts and deposits. This highlighted the overall decline across key categories under the LRS.
The data reflects a general reduction in outward remittances, driven by a slowdown across most segments.
