 "Overseas Indians do it again, remittances cross $100 bn for second year")
Indians living abroad have sent a record $107 billion remittances to their relatives back in India in the financial year 2023-2024.
It is for the second financial year in a row that the remittances from overseas Indians has crossed the $100 billion mark.
According to a report by The Economic Times, as reflected in private transfers in the balance of payments, remittances by the Indian diaspora touch a gross level of $119 billion in FY 2023-23. After taking into consideration the repatriation of income by private foreign residents as well as other remittances, net private transfers stood to be $107 billion.
The report further said that the net remittances, at the current levels, are almost double the level of net foreign investment – combination of FDI and portfolio investments – of $54 billion during the year.
“Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing,” Dilip Ratha, economist and lead author of the World Bank report - Migration and Development Brief - said.
Indians in which country are sending most remittances?
A survey on remittances conducted post-Covid by the Reserve Bank of India (RBI) showed that the United States is the largest source of remittances, accounting for 23 per cent of the total.
It also showed that the flow of remittance from the Gulf region has declined remarkably.
Meanwhile, several global studies and research in India have shown that remittances are linked to the level of migration in different economies and the job opportunities as well as the situation in the source countries.
Impact Shorts
More ShortsThe cost of remittances is also considered to be a factor influencing overseas remittances.
What are these remittances used for?
As per the RBI survey, the bulk of remittances goes towards the needs of the family, while a portion is also invested in other assets including deposits.
Meanwhile, in December, the World Bank released the “Migration and Development Brief” which mentioned that India continued to be the largest recipient of the remittances from its diaspora for over 20 years, mostly driven by the surge in IT professionals going to North America and Europe from the nineties.
Which are the top 5 remittance recipient nations?
As mentioned, the US remained the largest source of remittances. The top five remittance recipient countries in 2023 are:
India ($125 billion)
Mexico ($67 billion)
China ($50 billion)
Philippines ($40 billion)
Egypt ($24 billion).
With inputs from agencies
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