Remittances : India Status
Remittances to India surged by 26% to reach approximately $112 billion in FY23, marking a significant increase from the approx $89 billion recorded in FY22.
- This growth in remittances reflects the heightened demand for Indian professionals globally following the pandemic.
- Remittances are funds sent by migrants to their families and friends in their home countries.
- They serve as vital income and foreign exchange for numerous developing nations, particularly in South Asia.
- Private remittances significantly contribute to India’s current account, helping offset the trade deficit that often arises from merchandise trade.
- Remittances are typically classified as part of the current account in a country’s balance of payments.
- India has consistently remained the leading global recipient of remittances for several years.
- This is in contrast with FDI inflows, which were lower at about $71 billion in FY23, down from about $85 billion in FY22
- The top five recipient countries for remittances in 2022 were India, Mexico, China, the Philippines, and Pakistan
- The top sources for inward remittances to India in 2020-21 were the
- USA (over 23%)
- UAE (18%)
- UK (about 7%)
- Singapore (about 6%)
- Saudi Arabia (about 5%)