{"id":55288,"date":"2025-09-26T20:38:43","date_gmt":"2025-09-26T15:08:43","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=55288"},"modified":"2025-09-27T15:15:12","modified_gmt":"2025-09-27T09:45:12","slug":"india-outward-remittances-dip","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/26-09-2025\/india-outward-remittances-dip","title":{"rendered":"India&#8217;s Outward Remittances Dips 11% Under Liberalised Remittance Scheme"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Outward remittances by resident individuals under the Reserve Bank of India\u2019s Liberalised Remittance Scheme (LRS) fell nearly <strong>11%<\/strong> year-on-year in July 2025, totalling <strong>$2,452.93 million<\/strong> against <strong>$2,754.05 million<\/strong> in the same period last year.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Remittances?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Remittances <\/strong>are a way to electronically send funds to people, often family, in another country.\n<ul class=\"wp-block-list\">\n<li>Usually sent by individuals working in foreign countries, especially those employed in blue-collar or skilled jobs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Remittances are a significant source<\/strong> of income for many countries, contributing to their <strong>economic stability,<\/strong> supporting local economies<strong>, <\/strong>and sometimes helping to <strong>finance national trade deficits.<\/strong><\/li>\n\n\n\n<li><strong>Modes of Transfer:<\/strong> Remittances can be sent through banks, money transfer operators, or digital platforms.<\/li>\n\n\n\n<li><strong>Outward Remittance: <\/strong>Outward remittance refers to the <strong>transfer of money in foreign currency <\/strong>by a resident of India to a person or entity outside India, for purposes such as education, travel, medical treatment, investment, or gifting.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>India\u2019s Remittances: Key Facts<\/strong><br>&#8211; <strong>India&#8217;s remittances have more than doubled<\/strong> from $55.6 billion in 2010-11 to $118.7 billion in 2023-24.<br>&#8211; <strong>As per the World Bank, <\/strong>India has been the <strong>top recipient of remittances since 2008,<\/strong> with its share in world remittances rising from around 11 per cent in 2001 to about 14 percent in 2024.<br>&#8211; Remittances from the U.S. and U.K. nearly doubled to<strong> 40% of total inward remittances in FY24<\/strong>, up from 26% in FY17.&nbsp;<br>&#8211; The U.S. became the top source of remittances in FY21, contributing 23.4% followed by the UAE contributing 19.2%.<br>&#8211; Half of the remittances went to Maharashtra, Kerala, and Tamil Nadu. Other states like Haryana, Gujarat, and Punjab had smaller shares (below 5%).<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why did student remittances decline?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Global Visa Restrictions: <\/strong>Major destinations like US, UK, Canada saw <strong>25\u201331% declines<\/strong> in Indian student visas.<\/li>\n\n\n\n<li><strong>Economic Uncertainty:<\/strong> Families postponed study and travel plans due to global financial volatility.<\/li>\n\n\n\n<li><strong>High Base Effect:<\/strong> Remittances were at peak levels in FY24, making a decline statistically likely.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>What is the <strong>Liberalised Remittance Scheme<\/strong> (LRS)?<\/strong><br>&#8211; LRS was introduced in <strong>2004<\/strong> by the <strong><a href=\"https:\/\/www.nextias.com\/blog\/reserve-bank-of-india-rbi\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/reserve-bank-of-india-rbi\/\">Reserve Bank of India (RBI).<\/a><\/strong><br>&#8211; It allows resident individuals (including minors) to remit up to <strong>$250,000 per financial year <\/strong>for permissible current or capital account transactions.<br>&#8211; Initially launched with a $25,000 limit, later increased to current levels.<br>&#8211; Remittances can be made for;<br>1. Education and studies abroad,<br>2. Travel and tourism,<br>3. Medical treatment abroad,<br>4. Purchase of property,\u00a0<br>5. Investment in foreign securities or businesses.<br>&#8211; LRS is governed under the <strong>Foreign Exchange Management Act (FEMA), 1999.<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/outward-remittances-under-lrs-dips-11-in-july-to-245293-million\/article70094648.ece#:~:text=For%202024-25%2C%20the%20remitta\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">Outward remittances by resident individuals under the Reserve Bank of India\u2019s Liberalised Remittance Scheme (LRS) fell nearly 11% year-on-year in July 2025, totalling $2,452.93 million against $2,754.05 million in the same period last year.<\/li>\n<p><\/p>\n<h3><strong>What are Remittances?<\/strong><\/h3>\n<li class=\"ms-5\">Remittances are a way to electronically send funds to people, often family, in another country.<\/li>\n<li class=\"ms-5\">Usually sent by individuals working in foreign countries, especially those employed in blue-collar or skilled jobs.<\/li>\n<li class=\"ms-5\">Remittances are a significant source of income for many countries, contributing to their economic stability, supporting local economies, and sometimes helping to finance national trade deficits.<\/li>\n<li class=\"ms-5\">Modes of Transfer: Remittances can be sent through banks, money transfer operators, or digital platforms.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/26-09-2025\/india-outward-remittances-dip\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":55319,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-55288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/india-outward-remittances-dip.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/55288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=55288"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/55288\/revisions"}],"predecessor-version":[{"id":55353,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/55288\/revisions\/55353"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/55319"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=55288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=55288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=55288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}