While Indians settled abroad have now started sending more money to India, Indians are spending heavily abroad. This difference has become more than three times if we discuss this year. The amount deposited by NRIs in Indian banks this year was the highest compared to the last 8 years. The Reserve Bank recently released these figures.
Highest Amount Deposited After 8 Years
In the last eight years, NRIs have deposited the highest amount in Indian banks. According to the Reserve Bank, in the financial year 2023-24, NRIs deposited $14.7 billion (about Rs 1.22 lakh crore) in Indian banks, 63.5 percent more than last year.
Last year, NRIs deposited 8.98 billion dollars (about Rs 75 thousand crore) in Indian banks. This year’s deposit is the highest compared to the previous eight years. Eight years ago, in 2015-16, NRIs deposited a maximum of 15.97 billion dollars (about Rs 1.33 lakh crore) in Indian banks.
Indians Are Spending A Lot Abroad
According to a report, this year, Indians spent 31.7 billion dollars (about Rs 2.64 lakh crore) abroad. This is 17 per cent more than last year. Last year, Indians spent $27.1 billion (Rs 2.25 lakh crore) abroad. Indians have spent this under the Liberalized Remittance Scheme (LRS). This increase in expenditure has occurred despite the implementation of Tax Collection at Source (TCS). TCS was implemented in October 2023. However, according to the data, the monthly average expenditure decreased after implementing TCS.
Spent The Most On Traveling
According to the annual remittances data, Indians have spent the maximum amount travelling abroad. This data shows that Indians spent $17 billion (about Rs 1.41 lakh crore) travelling abroad in FY24. Last year, 13.6 billion dollars (about Rs 1.11 lakh crore) were spent on tourism.
Decrease In Education Expenditure
The amount sent for studies abroad is continuously decreasing. In the year 2021, this share was 30 percent. In the year 2022, it will come down to 26 per cent. However, in 2023, this expenditure will remain only 12 percent. The expenditure in 2024 will be almost equal to that of 2023. Due to lower expenditure on fees, study abroad is no longer the second largest category of foreign exchange expenditure. Indians spent more on the maintenance of relatives abroad than on fees. After this, most of the money was spent on giving gifts.
