Outward remittances by resident Indians under the Liberalised Remittance Scheme (LRS) increased by 19.9% year-on-year to $2.55 billion in June 2026, marking the highest monthly level in the first quarter of FY27. This figure also represents a 6.5% rise month-on-month from May and an 11.6% increase from April. Cumulatively, $7.23 billion was remitted under LRS during April-June 2026. This surge was notably fueled by a sharp increase in remittances for equity and debt investments, which rose 91.4% from April to $456.69 million in June, reaching $1.06 billion for the quarter.
Travel remained the largest component of these remittances, accounting for $1.37 billion, or 53.6%, of the total LRS outflows in June. This category includes $853.11 million for other travel (holiday trips, international credit card payments) and $488.32 million for travel related to education. Other significant categories in June included maintenance of close relatives at $287.04 million and gifts at $211.49 million. Remittances for purchasing immovable property abroad were $49.65 million, and overseas deposits were $70.74 million. Interestingly, remittances for studies abroad, which covers education services without travel, stood at $96.76 million.
Analysts noted that the muted performance of Indian equities after a prolonged rally likely prompted high-net-worth individuals and family offices to seek opportunities abroad, particularly in markets like the United States offering stronger returns and exposure to sectors such as AI. The IPO of Elon Musk-led SpaceX, valued at $1.75 trillion in June, also contributed to increased investment activity. Additionally, there's growing interest in dollar-linked fixed-income products due to the rupee's depreciation, with investors favoring dollar-denominated debt over rupee debt. Travel expenses also increased by 10% year-on-year and 6% month-on-month, likely reflecting the rupee's weakness. For the full FY26, LRS remittances totaled $28.98 billion, with travel accounting for $16.44 billion, maintenance of close relatives for $3.54 billion, equity and debt investments for $2.65 billion, and gifts for $2.59 billion.
