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Travel is the Top Reason Why Indians spend Money Overseas

Until last year, the top reason for remittances was Indians sending money abroad for maintenance of close reltives and for studies.

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(Representational Image), wikimedia

Mumbai, April 26, 2017: For the first time, foreign travel has grabbed the spot of the number one reason why Indian individuals spend money overseas.

The top reason for remittances was Indians sending money abroad for study purposes or maintenance of close relatives even until last year.

These remittances are made under the Reserve Bank of India’s Liberalised Remittance Scheme which allows individuals to send up to $250,000 annually.

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Spending money on travel has ranked number three in the list of reasons for remittances for several years. But the current fiscal has witnessed a change in that.

According to TOI reports, in FY17 (up to February 2017), remittances towards travel increased 3.6 times to $2.3 billion, accounting for a third of total international spending by Indians. In FY16, the total amount spent on travel at $651 million, amounted to only 15% of the total remittances.

According to M. Hariprasad, senior VP and head of treasury at Centrum Direct, A good growth has been noticed in travel to destinations like Thailand, Dubai and other places in the Gulf. “A combination of affordable airfares and offers by intermediaries has brought international travel within the reach of a lot many people,” he added.

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In 2013 when the rupee went into a free fall, the forex remittance limit was brought down from $200,000 to $70,000. However, in May 2015 this limit was restored and then increased to $250,000.

The spending on travel has nothing to do with the relaxation of ceiling on forex remittances as average spending is only in thousands of dollars; Hariprasad mentioned.

More than the relaxation of forex limits, overseas travel appears to have been boosted by the firming up of the rupee. However, travel companies insist that the growth is only normal because there is a shift to direct spending through credit cards and online bookings.

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Total remittances by Indians have gone up from $4.3 billion in FY16 to $7 billion in FY17 (up to February), an surprising increase of 63%. On the other hand, Indians sending money abroad for purchase of immovable property has shrunk from $90 million in FY16 to $82 million. A marginal decline on spending for medical treatment purposes overseas from $17 million to $15 million has been spotted as well.

However, as data for March 2017 is not available yet, the numbers could still rise.

– prepared by Durba Mandal of NewsGram. Twitter: @dubumerang

  • Yes. and this is true. We the Indians mostly spend when it comes to travel overseas. Maybe to get closer to the glamour or what.

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Indians Spending Over 10 Hours on Their Devices Daily, Adobe Survey Reveals

Online news sources emerged as the second-best method to source and share information for the mobile-friendly Indians

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The headquarters of Adobe Systems in San Jose, California
The headquarters of Adobe Systems in San Jose, California. Wikimedia

Seeking more personalised experiences, Indians are spending over 10 hours on their devices daily, representing the changing content consumption habits, a new Adobe survey revealed on Wednesday.

As part of its “2019 Brand Content Survey”, the software major found that two-third of those surveyed were using two devices at the same time constantly or frequently.

Over 400 million millennials in India choose trustworthy brands that respect their privacy primarily, the findings showed.

“Brands that can strike the right level of personalisation will forge stronger connections with their customers, resulting in brand loyalty and growth,” said Sunder Madakshira, Head, Marketing, Adobe India.

According to the survey, two-thirds of India’s digital users, especially between the 23-49 age group, are comfortable making unplanned purchases from a brand.

Nearly 69 per cent shoppers in the country prefer online marketplaces for purchasing products.

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India made the biggest contribution to the demand for smart feature phones in 2018. Pixabay

While 49 per cent people visit a brand’s website to buy products, 31 per cent people still make purchases via physical stores and 28 per cent Indians use smart speakers and voice assistants to make purchases, the survey noted.

“It is not surprising that online review sites, social media networking sites and video channels were voted as critical cogs of pre and post purchase interactions, especially in the younger age groups,” added Madakshira.

Nearly 95 per cent of the people between the 18-34 age group trust Google-owned YouTube the most, while middle-aged and elderly people rely more on Facebook.

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India has nearly 300 million Facebook users and over 265 million YouTube users.

Online news sources emerged as the second-best method to source and share information for the mobile-friendly Indians. (IANS)