Remittances to India are money transfers (called remittance) from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's top receiver of remittances, claiming more than 12% of the world's remittances in 2015.[1][2] Remittances to India stood at US$110 billion in 2022 and remittances from India to other countries totalled US$5.710 billion, for a net inflow of US$63.258 billion in 2017.[3][4][5]
This section is empty. You can help by adding to it. (February 2020)
OverviewEdit
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. NRO Accounts are not repatriable except for all current income. Balances in an NRO account of NRIs/ PIOs are remittable up to US$1 (one) million per financial year (April–March) along with their other eligible assets. NRE Accounts are repatriable. Credits permitted to NRE account are inward remittance from outside India, interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds of investments (if such investments were made from this account or through inward remittance). Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account.[7][8]
Since 1991, India has experienced sharp remittance growth. In 1991 Indian remittances were valued at 2.1 billion USD;[5][9] in 2006, they were estimated at between $22 billion[10] and $25.7 billion.[4] which grew to $67.6 billion in 2012-13, up from $66.1 billion the fiscal year, 2011-2012,[6] when the remittance exceed the foreign direct investment (FDI) inflow of $46.84 billion into India.[11]
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, Andhra Pradesh and Uttar Pradesh which are among the top international remittance receiving states.[11][12] Andhra Pradesh gets most of its remittance from the US, Kerala from UAE, Punjab from Canada as most of the people migrate from their states to these countries. Tamil Nadu has the most diverse mix of remittance sources due to the presence of large Tamil diasporas in many countries like Australia, Canada, France, United Kingdom etc. with Malaysia, Singapore and the United States being the largest sources of remittance. Research work on remittances to India is listed in the India Migration Bibliography.[13]
In recent years many Indian Immigrants have used online money transfer services to send money from overseas to India. In recent years, many new Online and mobile companies have facilitated the transition to online remittances. Even some Indian banks have recently offered such services.[14]
However, owing to the onslaught of COVID-19, the World Bank has estimated a 9% decline in the remittances to India.[15]
Remittances to India by fiscal yearEdit
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 bn
3.08%
2006–2007
US$29.10 bn
2.39%
2007–2008
US$37.20 bn
2.77%
2008–2009
US$51.60 bn
3.84%
2009–2010
US$55.06 bn
3.28%
2011–2012
US$66.10 bn
3.61%
2012–2013
US$67.60 bn
3.64%
2013–2014
US$70.39 bn
3.45%
2014–2015
US$66.30 bn
3.15%
2015–2016
US$62.70 bn
2.73%
2016–2017
US$65.30 bn
2.46%
2017–2018
US$80.00 bn
2.95%
2018–2019
US$79.00 bn
2.78%
2019–2020
US$83.30 bn
3.12%
2020–2021
US$87.00 bn
2.75%
2021-2022
US$89.00 bn
3.00%
2022-2023
US$110 bn
Remittances to and from India by countryEdit
According to the RBI Governor Shaktikanta Das total of US$107.5 billion (2022-23) was made in remittances to India from other countries. Whereas total of US$7.01 billion (2020) was made in remittances to other countries from India. The following tables list the top ten source countries for remittances to India and the top ten destination countries for remittances from India in 2017.[3] Somewhat different figures have been estimated by the Reserve Bank of India.[19]
Remittances to IndiaEdit
According to the Pew Research Center, the top ten source countries for remittance to India in 2017 are as follows.[3] (Figures for remittances between India and Pakistan are not available)
According to the Pew Research Center. the top ten destination countries for remittance from India in 2017 are as follows.[3] (Figures for remittances between India and Pakistan are not available.)
^"International Migration at All-Time High". The World Bank. 18 December 2015. Retrieved 27 May 2016.
^"Pakistan 4th largest source of remittances to India". The Business Standard. 24 December 2015. Retrieved 27 May 2016.
^ abcd"Remittance flows by country 2017". Pew Research Center. Retrieved 7 April 2019.
^ ab"Remittances from Indians abroad push India to the top". www.nrirealtynews.com. 22 October 2007. Retrieved 14 March 2009.
^ abGupta, Poonam (1 December 2005). Macroeconomic Determinants of Remittances: Evidence from India. International Monetary Fund. ISBN9781451862430. Retrieved 14 March 2009.
^ ab"Remittances from Indian diaspora on the rise". The Economic Times. 19 February 2014. Retrieved 23 February 2014.
^"Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)". Reserve Bank of India. Retrieved 23 February 2014.
^Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Policy Institute. Retrieved 14 March 2009.
^"Remittances to India touch $22 billion". The Financial Express. 26 October 2006. Retrieved 14 March 2009.
^ abc. Hindustan Times. 8 October 2012. Archived from the original on 13 March 2014. Retrieved 23 February 2014.
^Tumbe, Chinmay (March 2011). "Remittances in India: Facts and Issues". IIMB Working Paper No. 331. SSRN 1780289. {{cite web}}: Missing or empty |url= (help)
^Tumbe, Chinmay (July 2012). "India Migration Bibliography". Indian Institute of Management Bangalore. SSRN 2117805. {{cite web}}: Missing or empty |url= (help)
^"Compare Money Transfer to India. Get Best USD to INR Exchange Rate". ExchangeRateIQ. Retrieved 22 July 2017.
^"Remittances to India to drop by 9% in 2020: World Bank report". Live Mint. 30 November 2020. Retrieved 30 November 2020.
^Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Information Source. from the original on 4 December 2010. Retrieved 28 July 2011.
^"Figure 4. Remittances to India, 1970 to 2008". Migration Information Source. from the original on 4 December 2010. Retrieved 28 July 2011.
^"India world's largest remittance recipient in 2015: World Bank". The Times of India. 14 April 2016. Retrieved 14 April 2016.
^"Reserve Bank of India - RBI Bulletin". m.rbi.org.in. Retrieved 18 December 2020.
External linksEdit
Ministry of Overseas Indian Affairs, Official website
Remittance Flows Worldwide in 2015 - Pew Research Center
October 21, 2023
remittances, india, this, article, require, cleanup, meet, wikipedia, quality, standards, specific, problem, outdated, information, needs, formatting, grammar, cleanup, please, help, improve, this, article, february, 2023, learn, when, remove, this, template, . This article may require cleanup to meet Wikipedia s quality standards The specific problem is Outdated information needs formatting and grammar cleanup Please help improve this article if you can February 2023 Learn how and when to remove this template message Remittances to India are money transfers called remittance from non resident Indians NRIs employed outside the country to family friends or relatives residing in India India is the world s top receiver of remittances claiming more than 12 of the world s remittances in 2015 1 2 Remittances to India stood at US 110 billion in 2022 and remittances from India to other countries totalled US 5 710 billion for a net inflow of US 63 258 billion in 2017 3 4 5 As per the Ministry of Overseas Indian Affairs MOIA remittance is received from the approximately 35 million members of the Indian diaspora 6 Contents 1 History 2 Overview 3 Remittances to India by fiscal year 4 Remittances to and from India by country 4 1 Remittances to India 4 2 Remittances from India 5 See also 6 References 7 External linksHistory Edit nbsp Medieval Hundi is Indian origin remittance system A hundi for Rs 2500 of 1951 stamped in the Bombay Province with a pre printed revenue stamp See also Hundi and Hawala This section is empty You can help by adding to it February 2020 Overview EditUnder 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 NRO Accounts are not repatriable except for all current income Balances in an NRO account of NRIs PIOs are remittable up to US 1 one million per financial year April March along with their other eligible assets NRE Accounts are repatriable Credits permitted to NRE account are inward remittance from outside India interest accruing on the account interest on investment transfer from other NRE FCNR B accounts maturity proceeds of investments if such investments were made from this account or through inward remittance Inward remittances from outside India legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account 7 8 Since 1991 India has experienced sharp remittance growth In 1991 Indian remittances were valued at 2 1 billion USD 5 9 in 2006 they were estimated at between 22 billion 10 and 25 7 billion 4 which grew to 67 6 billion in 2012 13 up from 66 1 billion the fiscal year 2011 2012 6 when the remittance exceed the foreign direct investment FDI inflow of 46 84 billion into India 11 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 Andhra Pradesh and Uttar Pradesh which are among the top international remittance receiving states 11 12 Andhra Pradesh gets most of its remittance from the US Kerala from UAE Punjab from Canada as most of the people migrate from their states to these countries Tamil Nadu has the most diverse mix of remittance sources due to the presence of large Tamil diasporas in many countries like Australia Canada France United Kingdom etc with Malaysia Singapore and the United States being the largest sources of remittance Research work on remittances to India is listed in the India Migration Bibliography 13 In recent years many Indian Immigrants have used online money transfer services to send money from overseas to India In recent years many new Online and mobile companies have facilitated the transition to online remittances Even some Indian banks have recently offered such services 14 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 11 However owing to the onslaught of COVID 19 the World Bank has estimated a 9 decline in the remittances to India 15 Remittances to India by fiscal year EditThe 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 GDP1990 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 bn 3 08 2006 2007 US 29 10 bn 2 39 2007 2008 US 37 20 bn 2 77 2008 2009 US 51 60 bn 3 84 2009 2010 US 55 06 bn 3 28 2011 2012 US 66 10 bn 3 61 2012 2013 US 67 60 bn 3 64 2013 2014 US 70 39 bn 3 45 2014 2015 US 66 30 bn 3 15 2015 2016 US 62 70 bn 2 73 2016 2017 US 65 30 bn 2 46 2017 2018 US 80 00 bn 2 95 2018 2019 US 79 00 bn 2 78 2019 2020 US 83 30 bn 3 12 2020 2021 US 87 00 bn 2 75 2021 2022 US 89 00 bn 3 00 2022 2023 US 110 bnRemittances to and from India by country EditAccording to the RBI Governor Shaktikanta Das total of US 107 5 billion 2022 23 was made in remittances to India from other countries Whereas total of US 7 01 billion 2020 was made in remittances to other countries from India The following tables list the top ten source countries for remittances to India and the top ten destination countries for remittances from India in 2017 3 Somewhat different figures have been estimated by the Reserve Bank of India 19 Remittances to India Edit According to the Pew Research Center the top ten source countries for remittance to India in 2017 are as follows 3 Figures for remittances between India and Pakistan are not available Rank Source country Amount US 1 UAE 13 826 billion2 United States 11 715 billion3 Saudi Arabia 11 239 billion4 Kuwait 4 587 billion5 Qatar 4 143 billion6 United Kingdom 3 941 billion7 Oman 3 250 billion8 Nepal 3 016 billion9 Canada 2 877 billion10 Australia 1 944 billionRemittances from India Edit According to the Pew Research Center the top ten destination countries for remittance from India in 2017 are as follows 3 Figures for remittances between India and Pakistan are not available Rank Destination country Amount US 1 Bangladesh 4 033 billion2 Nepal 1 021 billion3 Sri Lanka 520 million4 China 41 million5 France 15 million6 Malaysia 11 million7 Nigeria 10 million8 Germany 9 million9 Myanmar 8 million10 Kenya 7 millionSee also Edit Remittance relatedGlobal ranking of remittance by nations Hawala HundiIndian economy relatedEconomy of India Business process outsourcing to India Foreign trade of India List of exports of India Largest trading partners of IndiaFactors influencing remittances to IndiaIndian diaspora Global ranking of remittance by nations IndosphereOthersNegotiable Instruments Act 1881 Correspondent accountReferences Edit International Migration at All Time High The World Bank 18 December 2015 Retrieved 27 May 2016 Pakistan 4th largest source of remittances to India The Business Standard 24 December 2015 Retrieved 27 May 2016 a b c d Remittance flows by country 2017 Pew Research Center Retrieved 7 April 2019 a b Remittances from Indians abroad push India to the top www nrirealtynews com 22 October 2007 Retrieved 14 March 2009 a b Gupta Poonam 1 December 2005 Macroeconomic Determinants of Remittances Evidence from India International Monetary Fund ISBN 9781451862430 Retrieved 14 March 2009 a b Remittances from Indian diaspora on the rise The Economic Times 19 February 2014 Retrieved 23 February 2014 Accounts in India by Non Resident Indians Facilities for Non Resident Indians NRIs and Persons of Indian Origin PIOs Reserve Bank of India Retrieved 23 February 2014 Chishti Muzaffar February 2007 The Rise in Remittances to India A Closer Look Migration Policy Institute Retrieved 14 March 2009 Remittances to India touch 22 billion The Financial Express 26 October 2006 Retrieved 14 March 2009 a b c NRIs beat FDI keep the money coming Hindustan Times 8 October 2012 Archived from the original on 13 March 2014 Retrieved 23 February 2014 Tumbe Chinmay March 2011 Remittances in India Facts and Issues IIMB Working Paper No 331 SSRN 1780289 a href Template Cite web html title Template Cite web cite web a Missing or empty url help Tumbe Chinmay July 2012 India Migration Bibliography Indian Institute of Management Bangalore SSRN 2117805 a href Template Cite web html title Template Cite web cite web a Missing or empty url help Compare Money Transfer to India Get Best USD to INR Exchange Rate ExchangeRateIQ Retrieved 22 July 2017 Remittances to India to drop by 9 in 2020 World Bank report Live Mint 30 November 2020 Retrieved 30 November 2020 Chishti Muzaffar February 2007 The Rise in Remittances to India A Closer Look Migration Information Source Archived from the original on 4 December 2010 Retrieved 28 July 2011 Figure 4 Remittances to India 1970 to 2008 Migration Information Source Archived from the original on 4 December 2010 Retrieved 28 July 2011 India world s largest remittance recipient in 2015 World Bank The Times of India 14 April 2016 Retrieved 14 April 2016 Reserve Bank of India RBI Bulletin m rbi org in Retrieved 18 December 2020 External links Edit Ministry of Overseas Indian Affairs Official website Remittance Flows Worldwide in 2015 Pew Research Center Retrieved from https en wikipedia org w index php title Remittances to India amp oldid 1180300591, wikipedia, wiki, book, books, library,
