Outward Remittances Under LRS Decline 10.9% in July 2025
Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS)
fell 10.9% year-on-year in July 2025 to
$2.45 billion.
Key Drivers of Decline
The fall was led mainly by lower international travel spends and
payments for overseas education. In contrast, remittances for
equity, deposits, and property purchases recorded growth.
Travel and Education Remittances
- Travel: $1.4 billion in July 2025, down from $1.6 billion last year
(13% decline). - Education: $0.22 billion, down from $0.27 billion last year
(16% decline).
The fall in education-related remittances is notable since July–September typically sees higher
spending due to the academic season in Western countries.
April–July 2025 Trend
Between April–July 2025, total outward remittances under LRS stood at
$6.9 billion, a 28% decline compared to the same period in 2024.
- Travel-related remittances: down 29%.
- Education-related remittances: down 44%.
Historical Context
Businessline’s analysis of July remittance data since 2019 shows this is the
first decline since July 2020 (Covid year).
Travel remittances had shown steady YoY growth since 2021, while education-related flows
displayed mixed trends over the years.
About LRS
The Liberalised Remittance Scheme (LRS) allows resident individuals to
remit up to $250,000 per financial year for permissible transactions such as
education, travel, and overseas investments.
Source: RBI Data | This article has been rewritten for clarity and structured presentation.
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