The USA has been one of the top destinations for students in India to study abroad. A recent report by the Reserve Bank of India reveals that under the Liberalised Remittance Scheme (LRS), on an average India has spent $ 135.55 million USD per month for the last academic year from 2016 to 2017.
In total, the expenditure of Resident Individuals from India crosses thousand million dollars. The trend, however, is varying every month. In April 2017, there has been a drop of $25 million USD, as the expenditure has fallen from $115.1 million USD in March 2017 to $ 90.3 million USD in April 2017.
Also Read: Advantages of studying abroad
What is Liberalised Remittance Scheme (LRS)?
Under LRS, all resident individuals can freely remit $250,000 overseas every financial year for a permissible set of current or capital account transactions. There are some restrictions for people from India to send money abroad.
- Money cannot be sent from India to people in the USA as gifts or donations. That is the basic rule of the LRS.
- To suspicious terrorists, money cannot be transferred
But there are certain exceptions where money can be sent to people from India to the USA as stipulated by the RBI. Money can be sent, for purposes such as
- Study in USA
- Buying property in USA
Who are Resident Individuals?
Resident Individuals are people who live in India for quite some time. The term resident individual means every individual who is domiciled in this state, even though absent for temporary or transitory purposes, and every individual who for an aggregate of more than six months both maintains a permanent place of abode within this state and who is present in this state.
NRI in USA
Given that there are good institutes for both Undergraduate and Higher Studies in America and the love for global citizens to visit the country, these millions of dollars are making its way out of the country from Indians seeking quality education.
Brain Drain to Brain Gain
However, the Modi government has taken efforts and sportive measures, encouraging students to study abroad but come back to India and work or get settled there and contribute efficiently to the country as NRIs."In foreign lands and communities across the globe, the Indian diaspora represents the best of Indian culture, ethos and values," the Prime Minister was noted saying in his speech for Pravasi Bharati Divas in January this year, urging the NRI to invest in India and help in building the Indian economy from outside their motherland.