Economy

Outward Remittances Under RBI's LRS Decline in Q1 FY25

Published August 20, 2024

According to the latest data, there has been a significant decrease in outward remittances from India under the Reserve Bank of India's (RBI) Liberalized Remittance Scheme (LRS). Reports indicate a 24% drop to $6.9 billion in the first quarter of the fiscal year 2025. This decline highlights shifts in investment patterns and could influence market dynamics, both domestically and internationally.

Understanding LRS and Its Impact on the Economy

The LRS allows Indian residents to freely remit a certain amount overseas for permissible transactions without needing prior approval from RBI. The 24% drop could suggest changing investment appetites, potentially due to market volatility, changes in foreign investment opportunities, or shifts in the value of the Indian rupee against other currencies.

Global Tech Giants and Investment Portfolios

Amidst the backdrop of these remittance trends, global tech giants like Alphabet Inc. GOOG continue to attract international investors looking for durable investment options. Alphabet, the parent company of Google and a myriad of other subsidiaries, stands as the world's fourth-largest technology company by revenue. Its strong performance could cushion portfolios against market fluctuations that might otherwise lead to a retreat in outward remittances.

Alphabet Inc. - A Closer Look at the Giant

Headquartered in Mountain View, California, Alphabet Inc. was formed through a restructuring of Google on October 2, 2015. Tapping into diversified business ventures beyond its core search engine, Alphabet has grown into one of the world's most valuable companies. Holding controlling shares and board memberships, Google's co-founders continue to play a significant role at Alphabet, overseeing its operations and guiding its future direction.

investment, remittances, Alphabet