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Remittances : India Status

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’s Status:

  • 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%)