PM Modi Urged the Public to Not Travel Abroad, RBI Data Shows People Are Already Spending Less on Foreign Travel
New Delhi: In the last two years, the spending of Indian nationals on foreign travels has registered a decline as compared to past years, an analysis of data from the Reserve Bank of India (RBI) has revealed, reported The Hindu. Just days back, prime minister Narendra Modi, while speaking at a gathering in Telangana on Sunday (May 10) had urged Indians to not travel abroad and not spend on foreign weddings for at least the year.
“The growing culture of weddings abroad, travelling abroad, and vacationing abroad is becoming prevalent among the middle class. We must decide that during this time of crisis, we should postpone travelling abroad for at least a year,” Modi had said at the gathering.
However, the RBI data indicates that the spending in this regard has already been decreasing since the last two years.
Contrary to what Modi implied about spendings on foreign travels and weddings impacting the Indian economy, the RBI data reveals that the dollar outflow was actually coming from high-net-worth individuals (HNIs) who invest in movable and immovable foreign assets, instead of holiday-goers or those getting married in foreign locations, reported The Hindu.
The RBI data pertaining to the expenditure under the Liberalised Remittances Scheme, which is the only formal pathway under which Indians can spend abroad, reveals that while $26.4 billion spent under this scheme in the first 11 months (April 2025 to February 2026) of 2025-26, this figure is 2.3% lower than what was spent in the same period of 2024-25.
Of the $26.4 billion, spending on foreign travel accounted for $15.3 billion which was 3.1% lower in April 2025-February 2026 than in the same period of the previous year, which itself was 1% lower than in April 2024-February 2025.
Spending on gifts sent abroad also declined by 12.7% and 19.1% in the first 11 months of 2025-26 and 2024-25, respectively, said the Hindu report.
However, investment by Indians in foreign debt and equity increased by almost 59% to $2.2 billion between April 2025-February 2026. The amount spent on the purchase of immovable assets abroad also increased by more than 76% in the first 11 months of 2025-26, to $490 million.
Modi to embark on five-nation tour in UAE, Europe
Meanwhile, days after he appealed to the public to not travel abroad, Modi will be embarking on a five-nation tour in the in the United Arab Emirates (UAE) and Europe from May 15-20, reported Reuters.
The foreign ministry said in a statement on Monday (May 12) that Modi will visit the UAE on May 15 and later travel to the Netherlands, Sweden, Norway and Italy.
The prime minister’s latest tour abroad comes at a time when Indian economy has been severely impacted by the ongoing West Asia crisis triggered by the US and Israel’s war on Iran.
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