Remittances to India

Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's leading receiver of remittances, claiming more than 12% of the world's remittances in 2015.[1][2] Remittances to India stood at US$68.91 billion in 2015, accounting for over 4% of the country's GDP.[1][2][3][4][5] [6]As per the Ministry of Overseas Indian Affairs (MOIA), remittance is received from the approximately 25 million members of the Indian diaspora.[7] India, while retaining its top spot as the world's largest remittance recipient, led the decline with remittance inflows amounting to $62.7 billion last year, a decrease of 8.9 per cent over $68.9 billion in 2015 [8]

A total of US$8.476 billion was made in remittances by foreign workers in India to their home countries.

Overview

Under the Foreign Exchange Management Act (FEMA) of 1999, Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can open and maintain three types of accounts namely, Non-Resident Ordinary Rupee Account (NRO Account), Non-Resident (External) Rupee Account (NRE Account) and Foreign Currency Non Resident (Bank) Account – FCNR (B) Account.[9]

Since 1991, India has experienced sharp remittance growth. In 1991 Indian remittances were valued at 2.1 billion USD;[5][10] in 2006, they were estimated at between $22 billion[11] and $25.7 billion.[4] which grew to $67.6 billion in 2012-13, up from $66.1 billion the fiscal year, 2011-2012,[7] when the remittance exceed the foreign direct investment(FDI) inflow of $46.84 billion into India.[12]

Money is sent to India either electronically (for example, by SWIFT) or by demand draft. In recent years many banks are offering money transfers and this has grown into a huge business. Around 40% of the India's remittances flow to the states of Kerala, Tamil Nadu, Punjab and Uttar Pradesh which are among the top international remittance-dependent economies of the world.[12][13] Research work on remittances to India is listed in the India Migration Bibliography.[14]

In recent years a lot of Indian Immigrants abroad have started using online money transfer services to send money from overseas to India. A lot of Online and mobile companies have come up in recent years that have facilitated the transition to online remittances. Even some Indian banks have started offering such services in over last few years.[15]

A 2012 study, by Reserve Bank of India revealed 30.8% of total foreign remittances was from West Asia, compared to 29.4% from North America and 19.5% from Europe.[12]

Remittances to India by fiscal year

The following table illustrates the remittances to India as percent of GDP, 1990–1991 to 2005–2010.[16][17][18]

Remittance by fiscal year
Year Remittances Percent GDP
1990–1991 US$2.10 bn 0.70%
1995–1996 US$8.50 bn 3.22%
1999–2000 US$12.07 bn 2.72%
2000–2001 US$12.85 bn 2.84%
2001–2002 US$15.40 bn 3.29%
2002–2003 US$16.39 bn 3.39%
2003–2004 US$21.61 bn 3.69%
2004–2005 US$20.25 bn 3.03%
2005–2006 US$24.55(projected) bn 3.08%
2006–2007 US$29.10 bn
2007–2008 US$37.20 bn
2008–2009 US$51.60 bn
2009–2010 US$55.06 bn
2011–2012 US$66.10 bn 4.00% [12]
2012–2013 US$67.60 bn [7]
2013-2014 US$70.39 bn [3][19]
2014-2015 US$66.30 bn[18]

Remittances to and from India by country

In 2015, a total of US$68.91 billion was made in remittances to in India from other countries, and a total of US$8.476 billion was made in remittances by foreign workers in India to their home countries. The table on left lists the major source countries for remittances to India, and the table on the right lists the major destination countries for remittances from India in 2015.[20]

See also

References

  1. 1 2 "International Migration at All-Time High". The World Bank. 18 December 2015. Retrieved 27 May 2016.
  2. 1 2 "Pakistan 4th largest source of remittances to India". The Business Standard. 24 December 2015. Retrieved 27 May 2016.
  3. 1 2 "India Wins the Remittance Race Again". The Wall Street Journal. 2015-04-15. Retrieved 2015-09-10.
  4. 1 2 "Remittances from Indians abroad push India to the top". www.nrirealtynews.com. 2007-10-22. Retrieved 2009-03-14.
  5. 1 2 Gupta, Poonam (2005-12-01). Macroeconomic Determinants of Remittances: Evidence from India. International Monetary Fund. ISBN 9781451862430. Retrieved 2009-03-14.
  6. ↑ "Best Way to Send Money to india | Get Best USD to INR Exchange Rate". ExchangeRateIQ. Retrieved 2017-07-22.
  7. 1 2 3 "Remittances from Indian diaspora on the rise". The Economic Times. Feb 19, 2014. Retrieved 2014-02-23.
  8. ↑ India, Press Trust of (2017-04-21). "Remittances to India dropped by nearly 9% in 2016: World Bank". Business Standard India. Retrieved 2017-07-22.
  9. ↑ "Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)". Reserve Bank of India. Retrieved 2014-02-23.
  10. ↑ Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Policy Institute. Retrieved 2009-03-14.
  11. ↑ "Remittances to India touch $22 billion". The Financial Express. 2006-10-26. Retrieved 2009-03-14.
  12. 1 2 3 4 "NRIs beat FDI, keep the money coming". Hindustan Times. October 8, 2012. Retrieved 2014-02-23.
  13. ↑ Tumbe, Chinmay (March 2011). "Remittances in India: Facts and Issues". IIMB Working Paper No. 331. SSRN 1780289 Freely accessible.
  14. ↑ Tumbe, Chinmay (July 2012). "India Migration Bibliography". Indian Institute of Management Bangalore. SSRN 2117805 Freely accessible.
  15. ↑ "Compare Money Transfer to India. Get Best USD to INR Exchange Rate". ExchangeRateIQ. Retrieved 2017-07-22.
  16. ↑ Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Information Source. Archived from the original on 2010-12-04. Retrieved 2011-07-28.
  17. ↑ "Figure 4. Remittances to India, 1970 to 2008". Migration Information Source. Archived from the original on 2010-12-04. Retrieved 2011-07-28.
  18. 1 2 "India world’s largest remittance recipient in 2015: World Bank". The Times of India. Retrieved 2016-04-14.
  19. ↑ "India tops global remittances list; received $70 billion in 2013: World Bank". The Economic Times. 11 April 2014. Retrieved 2014-04-12.
  20. ↑ "Remittance Flows Worldwide in 2015". 31 August 2016.
  21. ↑ SiliconIndia. "15 Nations Sending Highest Remittances to India - Page 2".
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