Heightened global uncertainty and a geopolitical climate led to a marginal dip in India’s outward remittances under the Liberalised Remittance Scheme (LRS) in FY26.As per RBI bulletin data, the total outward remittances under LRS slipped by 2 per cent year-on-year (y-o-y) to $28.9 billion in FY26. In FY25, total LRS remittances stood at $29.6 billion.In an indication of tougher conditions for education abroad, the decline was led by a steep drop of over 20 per cent in remittances toward studies abroad at $2.3 billion compared to $2.9 billion.Remittances towards international travel dropped about 3 per cent to $16.5 billion.However, the reduction in these segments was offset by a large increase in the remittances towards investment in foreign equity / debt, which grew 56 per cent y-o-y to $2.7 billion in FY26.In March 2026, travel remittances fell to $1.09 billion from $1.13 billion in March 2025.Indicating a growing need to track outward foreign remittances by purpose, for the first time in its May bulletin, RBI also provided a split of the travel remittances based on the purpose of the travel.Out of $1.09 billion, the spends for holidays and settlement of credit card transactions abroad together make up $0.62 billion. Travel for education (including fees, hostel expenses etc.) made up $0.45 billion.Analysts have told businessline earlier that fall in spends for overseas education was owing to tightening Visa regulations in the US coupled with weak job markets globally, especially for STEM roles. This meant students are opting for new, lower-cost destinations, they added.Similarly, in the case of travel, the depreciation of the rupee has been nudging Indians to travel to less expensive locations abroad.Published on May 22, 2026