Outward Remittances Dip to $2.3 Billion in May: RBI Report

Quick Summary

• Outward remittances from India in May 2025 amounted to $2.3 billion, as per RBI bulletin data.
• Travel expenses were the largest contributor, accounting for $1.38 billion, marking an increase of $118 million compared to April.
• Educational spending stood at $149 million while $322 million was sent to support close relatives during the same period.
• Total outward remittances declined by 4.4% compared to May of the previous year.

!Remittances
Caption: additionally, Indians also spent $149 million for education and $322 million on close relatives in May.

Indian Opinion Analysis

the data on outward remittances provides valuable insight into India’s financial flows under the Liberalised Remittance Scheme (LRS),particularly how Indians allocate their money overseas. While travel accounted for nearly half of all outward remittance activity, this segment also increased notably from April figures-a possible sign of elevated international travel interests post-pandemic normalcy or broader socio-economic factors prompting higher foreign expenditures.

Though, it is indeed notable that overall outward remittance volumes contracted by 4.4% year-on-year in May 2025 despite individual categories like travel showing growth month-on-month. The decline coudl be indicative of reduced discretionary spending or external economic conditions impacting Indian households’ capacity or inclination to send funds abroad.

This balance between selective category increases and an overall contraction may prompt closer scrutiny from policymakers regarding external monetary trends and domestic consumption patterns that could impact India’s foreign exchange reserves over time.

Read More