Record increase in money spent by Indians in foreign nations, $31.7 billion in last fiscal year

KOCHI: With the increase in popularity of leisure trips to foreign countries, there is also a record increase in money sent by Indians to foreign nations. According to a Bank of Baroda study report, the amount spent abroad has increased 29-fold in a decade and reached $31.7 billion in the last financial year. The lion's share of this is the cost of the trips for tourism. In 2003-04, Indians spent $1.1 billion abroad. Aditi Gupta, one of the finance experts at Bank of Baroda, said that the amount of money Indians take abroad has grown at an average of 40 per cent annually.

The figures show that Indian families give more importance to foreign travel. As the economy is growing well, the Indian middle class prefers foreign destinations over domestic destinations for holiday celebrations. Along with this, the increase in the number of students going abroad for educational purposes has also fueled the outward flow of money.

Expatriate remittances on the rise

In ten years, there has been a 70 percent increase in the amount sent to India by expatriates working in different countries. Expat investments rose from $7,000 crore in 2003-04 to $12,000 crore in the last financial year. India has retained its position as the country that receives the most expatriate remittances in the world. India receives twice as much investment as second-placed Mexico. Most of the money comes from the US- 25 percent of the total remittances. The Middle East region is in second place.