India’s Outward Remittances Hit 2-Year Low as Spending on Foreign Studies Slumps

The amount of money sent or spent abroad by Indians dropped to a two-year low of $1.94 billion in November 2025, as spending on foreign education and overseas travel weakened amid rising global uncertainty and tighter policy conditions. 

Key Development: Sharp Drop in Education and Travel Outflows 

Data from the Reserve Bank of India’s Liberalised Remittances Scheme (LRS) showed that total outward remittances declined 0.5% year-on-year in November to $1.94 billion, marking the lowest monthly level since November 2023.  

The biggest drag came from foreign education expenses, which plunged 30% year-on-year to $120.9 million, the weakest level since April 2020 during the pandemic. 

Spending on overseas travel also softened, slipping 1.1% year-on-year to $1.1 billion. Together, education and travel accounted for the bulk of the decline in remittance outflows during the month. 

Longer-Term Trend and Policy Suggestions 

During April-November 2025, total outward remittances stood at $19.1 billion, down 4.3% from the same period last year. Within this, education-related remittances dropped sharply by 22.5%, while travel spending declined nearly 6%. 

Kavad urged the government to fully waive the tax collected at source (TCS) on education remittances, irrespective of loan funding, noting that the current 5% levy creates unnecessary liquidity pressure for students and families. 

Read More: RBI Net Offloads $9.7 Billion in November as Short Dollar Positions Climb! 

Conclusion 

The sustained decline in education and travel remittances highlights the growing impact of global uncertainty on household overseas spending, signalling a cautious shift in cross-border financial flows. 

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