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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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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

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  • 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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Narendra Modi Considers Indians in Argentina as Bridge Between Two Nations

Narendra Modi is slated to meet Chinese President Xi Jinping and US President Donald Trump on the sidelines of the G20 summit

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Indians in Argentina bridge between two nations: Modi. Wikimedia Commons

Prime Minister Narendra Modi who arrived here to participate in the G20 Summit, sought the help of the Indians in Argentina in strengthening bilateral ties and taking it to a new level by playing the role of a “bridge”, an official statement said on Friday.

Narendra Modi made the remarks on Thursday evening while attending a “Yoga for Peace” event.

The Prime Minister said that there were unlimited possibilities of mutual cooperation between the two countries and “we can avail the benefits of our capabilities in the field of business, pharma, oil, gas, IT and space”.

“The cooperation between the two countries has an ability to create a golden future in sectors of water, land and space. You are all India’s messengers. Your contribution is a bridge which connects both the countries,” Modi said in the event.

Modi said that practices like yoga can further enhance the relationship between the two countries.

“The meaning of Yoga is to unite. Yoga connects us with ‘wellness and happiness’. It led to overcome thousands of kilometres distance between India and Argentina and has been uniting the people of both the countries.”

He invited Indians residing in Argentina and their friends to visit India and understand the country in a vast way.

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Prime Minister Narendra Modi (FILE PHOTO)

“All the Indians living in Argentina should come to India with their friends (and participate) in ‘Pravasi Bharatiya Divas’ programme to be organised in Kashi in January 2019. As the Ardh Kumbh will be going on at the same time in Prayagraj, you can observe the Indian culture, the face of a changing India and also a New India on these occasions.”

In the event, Modi said that issues such as global economy, sustainable development, climate change and economic fugitives, which are of interest to the entire global community will come up for discussion at the two-day summit that will begin on Saturday.

The event featured a mass yoga demonstration by 600 people, a song by famous Argentine singer Patricia Sosa, chanting of “Om Namah Shivaya” and a short Indian classical dance performance.

Congratulating “The Art of Living” for organising this event, the Prime Minister said that yoga improves the health of both the mind and body.

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Modi also spoke of Argentina’s interest in Indian philosophy, art, music, and dance; and the immense popularity of Argentine football stars, such as Diego Maradona, in India.

The Prime Minister congratulated the Argentine hockey team for winning their first match during the Hockey World Cup held in Odisha.

Narendra Modi is slated to meet Chinese President Xi Jinping and US President Donald Trump on the sidelines of the G20 summit. (IANS)