Indians reduced their overseas travel spending to $1.09 billion in March, down sharply from $1.3 billion in February and $1.65 billion in January, according to data from the Reserve Bank of India. The decline came as oil prices surged due to the West Asia conflict and the rupee weakened to record lows. Prime Minister Narendra Modi also urged citizens to limit foreign travel, a move that could help ease pressure on foreign exchange reserves.

Travel remained the largest component of outward remittances under the Liberalised Remittance Scheme, with total remittances standing at $2.59 billion in March. Holiday spending and international credit card settlements accounted for the biggest share of travel outflows at $623.05 million, while education-related travel expenses reached $450.16 million. Business travel, pilgrimage, and overseas medical treatment made up a much smaller portion.

Remittances for maintaining close relatives abroad increased to $389.78 million during the month. Overseas investment in equity and debt instruments also rose significantly, while spending on foreign property purchases and payments for remote education services declined. For the financial year 2024 to 2025, total outward remittances reached $29.56 billion, with travel contributing the largest share at $16.96 billion.