Remittances to India are money transfers (called

remittance A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland. Money sent home by migrants competes wit ...

) from

non-resident Indians Overseas Indians (IAST: ), officially Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are Indians who live outside of the Republic of India. According to the Government of India, ''Non-Resident Indians'' are citizens of Indi ...

(NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's top receiver of

s, claiming more than 12% of the world's remittances in 2015. Remittances to India stood at billion in 2017 and remittances from India to other countries totalled billion, for a net inflow of billion in 2017. As per the

Ministry of Overseas Indian Affairs The Ministry of Overseas Indian Affairs (MOIA) was a ministry of the Government of India. It was dedicated to all matters relating to the Indian diaspora around the world. History Ministry was established in May 2004 as the Ministry of Non-Res ...

(MOIA), remittance is received from the approximately 35 million members of the Indian diaspora.

History

Overview

Under the

Foreign Exchange Management Act The Foreign Exchange Management Act, 1999 (FEMA), is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly d ...

(FEMA) of 1999, Non Resident Indians (NRIs) and

Persons of Indian Origin Overseas Indians (International Alphabet of Sanskrit Transliteration, IAST: ), officially Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are Indian people, Indians who live outside of the Republic of India. According to the ...

(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. Since 1991, India has experienced sharp

growth. In 1991 Indian remittances were valued at 2.1 billion USD; in 2006, they were estimated at between $22 billion and $25.7 billion. which grew to $67.6 billion in 2012-13, up from $66.1 billion the fiscal year, 2011-2012, when the remittance exceed the

foreign direct investment A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct co ...

(FDI) inflow of $46.84 billion into India. Money is sent to India either electronically (for example, by SWIFT) or by

demand draft A demand draft (DD) is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee). A dema ...

. 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 Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...

Tamil Nadu Tamil Nadu (; , TN) is a States and union territories of India, state in southern India. It is the List of states and union territories of India by area, tenth largest Indian state by area and the List of states and union territories of India ...

Punjab Punjab (; Punjabi: پنجاب ; ਪੰਜਾਬ ; ; also romanised as ''Panjāb'' or ''Panj-Āb'') is a geopolitical, cultural, and historical region in South Asia, specifically in the northern part of the Indian subcontinent, comprising ...

Andhra Pradesh Andhra Pradesh (, abbr. AP) is a state in the south-eastern coastal region of India. It is the seventh-largest state by area covering an area of and tenth-most populous state with 49,386,799 inhabitants. It is bordered by Telangana to the ...

and

Uttar Pradesh Uttar Pradesh (; , 'Northern Province') is a state in northern India. With over 200 million inhabitants, it is the most populated state in India as well as the most populous country subdivision in the world. It was established in 1950 ...

which are among the top international remittance receiving states. Andhra Pradesh gets most of its remittance from the

USA The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

, Kerala from

UAE The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...

, Punjab from

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

as most of the people migrate from their states to these countries.

has the most diverse mix of remittance sources due to the presence of large Tamil diasporas in many countries like

Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

etc. with

Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...

and the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

being the largest sources of remittance. Research work on remittances to India is listed in the India Migration Bibliography. 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. A 2012 study, by

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...

revealed 30.8% of total foreign remittances was from

West Asia Western Asia, West Asia, or Southwest Asia, is the westernmost subregion of the larger geographical region of Asia, as defined by some academics, UN bodies and other institutions. It is almost entirely a part of the Middle East, and includes Ana ...

, compared to 29.4% from

North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...

and 19.5% from Europe. However, owing to the onslaught of

COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...

, the

World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...

has estimated a 9% decline in the remittances to India.

Remittances to India by fiscal year

The following table illustrates the remittances to India as percent of GDP, 1990–1991 to 2005–2010.

Remittances to and from India by country

According to the

estimated that a total of US$89.4 billion (2021) was made in remittances to India from other countries, and a 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. Somewhat different figures have been estimated by the

Remittances to India

According to the

Pew Research Center The Pew Research Center is a nonpartisan American think tank (referring to itself as a "fact tank") based in Washington, D.C. It provides information on social issues, public opinion, and demographic trends shaping the United States and the w ...

, the top ten source countries for remittance to India in 2017 are as follows. (Figures for remittances between India and Pakistan are not available)

Remittances from India

According to the

. the top ten destination countries for remittance from India in 2017 are as follows. (Figures for remittances between India and Pakistan are not available.)

References

External links

Ministry of Overseas Indian Affairs, Official websiteRemittance Flows Worldwide in 2015 - Pew Research Center
{{Economy of India I Economy of India Indian diaspora Investment in India

History

Overview

Remittances to India by fiscal year

Remittances to and from India by country

Remittances to India

Remittances from India

See also

References

External links