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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 Are Cooking Western Food In Their Kitchens: Survey

79% of Indians are preparing western food in their kitchen, says survey

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Majority of Indians cook western food. Pixabay

At least 79 per cent Indians are preparing western food in their kitchens, at least once a week, which is mostly consumed during evening or dinner time as a full meal, a survey by market research firm Ipsos said on Wednesday.

The survey titled ‘The Evolving Indian Palate’, was conducted with 1,000 households across 14 cities who consumed non-home cooked western food in the last one month and prepared western food at home, with the help of western sauces or spreads, at least once a month.

“The Dr Oetker-Ipsos survey has revealed some interesting insights into western food consumption habits in urban India. It is indeed encouraging for us to see that consumers today are more open to experimenting with food in their kitchens with Indo-Western fusion food becoming a rage in particular,” said Oliver Mirza, Managing Director, and CEO for Dr Oetker India & SAARC.

The advantage that western food has in terms of ease of preparation makes it a convenient choice, the Oetker – Ipsos survey has further revealed.

The survey also found that only about 19 per cent of households consume western food during breakfast.

Key trigger for the growing interest in western foods is convenience with comments like it is “easy to cook” (68 per cent) and has wide acceptance, with comments like “good to share with family and friends” (57 per cent), “Enjoyed by children” (53 per cent) and “Good to serve to guests” (46 per cent), the research said.

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The advantage that western food has in terms of ease of preparation makes it a convenient choice. Pixabay

However, western food is not relegated to special or celebratory occasions.

Seventy per cent respondents said that western food is more likely to be a meal replacement rather than being limited to occasions owing to its ease of preparation.

The study found that irrespective of cuisines, preparation of western foods at home is a family affair with two out of five people preparing meals with assistance such as spouse (34 per cent), friend (23 per cent) or another family member (38 per cent).

The research also found that younger people are embracing western foods more.

As a result, seven out of 10 western food consumers are below 30 years of age, with the western food drive being led mostly by the youth and children in their families.

“Despite the entrenched traditional food habits, urban Indians are increasingly becoming open to Western cuisine with more people taking to Western food as a part of their regular consumption regime. Wide access to information, time-pressed and evolving lifestyles, are the key factors to this change,” said Sreyoshi Maitra, Executive Director, Ipsos.

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“Interestingly, kitchens in the western food consuming Indian households have on an average three western sauces (apart from Ketchup) of which mayonnaise and pasta pizza sauce top the charts,” she added. (IANS)