The amount of money sent or spent abroad by Indians fell to a two-year low of $1.94 billion in November 2025, pulled down in large part by a sharp dip in the amount spent on foreign studies, which fell to its lowest level since the COVID-19 pandemic-impacted month of April 2020.

Analysis of data on the outward remittances under the Reserve Bank of India’s (RBI) Liberalised Remittances Scheme (LRS), shows that the other driver of the fall in overall remittances in November 2025 was a fall in the amount spent on foreign travel. 

Total outward remittances under the LRS stood at $1.94 billion in November 2025, down 0.5% from its level in November last year. This is the lowest it has been since November 2023. 

Within this, however, the amount spent on studies abroad fell to $120.9 million in November 2025, which is 30% lower than in the same month of 2024. 

The amount spent on foreign travel fell to $1.1 billion in November 2025, down 1.1% from November 2024.

“Outward remittances have shown a clear divergence in trend this year,” Pavan Kavad, managing director of Prithvi Exchange, a BSE-listed and Fortune 500 foreign exchange dealer, told The Hindu. “Global uncertainty caused by geopolitical tensions and tighter policy conditions in key destination markets, has weighed on outward remittances, particularly those linked to education.” 

“A visible slowdown in student enrolments and education-related spending across markets such as the U.S., UK, and Canada has translated into softer remittance flows, as families adopt a more cautious approach amid rising costs, visa uncertainties, and delayed intake cycles,” Mr. Kavad added.

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Looking at a longer time-period, the data shows that outward remittances during the April-November 2025 period stood at $19.1 billion, down 4.3% from the same period of 2024. 

Within this, spending on foreign studies was down 22.5% and on travel by nearly 6%. 

Mr. Kavad further urged the government to waive the tax collected at source (TCS) completely on education remittances, irrespective of whether a loan is availed, saying that the current 5% rate places an unnecessary upfront financial burden on students and families. 

“A full waiver would make global education more accessible and ease liquidity pressures at the start of their academic journey,” he explained.