Travel, education drive 25x LRS surge; investments' share drops

• Total LRS outflows from India surged 25 times, from $1.1 billion to $27 billion, between 2013-14 and 2022-23.
• Investment-related remittances under LRS grew nearly eightfold, from $166 million to $1.26 billion, over the past decade.
• Despite absolute growth, the share of investments in total LRS outflows decreased from approximately 15% to 5% in the last decade.
• Travel and overseas education have become the dominant categories for LRS usage, overshadowing investments.
• In 2022-23, travel outflows reached $13.66 billion, and investment outflows hit a record $1.25 billion, yet represented less than 5% of total remittances.

Why It Matters: Indians' foreign spending priorities are rapidly changing, impacting global markets.