Expenditure On Foreign Trips Has Doubled In FY23, Country’s Forex Spending Jumps To $27.1 Billion 

The world is now open to travel after the blow that came with the pandemic. The travel industry saw a huge surge as everyone simply set out to explore various destinations. The rebound in travel was higher than expected, and some of it even surpassed the 2019 mark. According to a report by the Reserve Bank of India (RBI), the expenditure on foreign trips has doubled in FY23. 

Expenditure On Foreign Trips Has Doubled In FY23

The expenditure on foreign trips has doubled in FY23 by 97%, as per a report by the Reserve Bank of India (RBI). It has seen a surge in expenditure from $6.9 billion last year to $13.7 billion in FY23. 

Indians spent about $6.9 billion before the pandemic, but when the pandemic hit the world, the travel spending went down to $3.23 billion. India’s forex spending stood at $27.1 billion in FY23 and saw a jump of $7.5 billion compared to the previous year. 

The sudden surge in travel spending is the result of people’s pent up demand for travel. Another reason is the awareness of various financial instruments that will fund foreign trips. 

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Financial Instruments To Fund Travel

SanKash, a travel now-pay-later fintech company, disbursed ₹180 crore in FY23, as mentioned by Akash Dahiya, the co-founder and chief executive. He continued by saying that this astounding increase in foreign travel has been fueled by the allure of discovering new landscapes and interacting with varied populations. 

The government has stated that persons using their international cards up to ₹7 lakh per fiscal year will not be subject to the limits imposed by the Liberalised Remittance Scheme, which is consistent with the RBI study on foreign exchange usage. Additionally, a source-based tax of 20% will not be applied to these transactions. (As per Money Control)

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