SafekipediaRemittances to India
Adapted from Wikipedia · Adventurer experience
Remittances to India are money sent by Indians living outside of India to their families back home. India gets more money from these transfers than any other country.
These funds help families and support India's economy. They bring stability and are important for both families and the country.
History
Overview
Remittances to India are money sent by Indians living outside the country to their families back home. India gets more money this way than any other country in the world. In 2023, India received about US$125 billion from these remittances, up from US$69 billion in 2017.
Historically, Indians moving to work in places like the Caribbean and Southeast Asia sent money back home. Today, many Indians live and work in the Middle East, North America, and Europe, and they also send money to India. Over the years, the amount of money sent has grown a lot. For example, in 1990, India received about $2 billion, but by 2019, this had risen to around $82 billion. Even with world events like the 2008 financial crisis, the amount kept growing.
People in India can receive money through electronic transfers or special bank documents called demand draft. Recently, many people have started using online services to send and receive money more easily.
Remittances to India by fiscal year
The table shows how much money was sent to India and how it compared to the country's total economy.
| 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 | 3.30% |
| 2023–2024 | US$129 bn | 3.40% |
Remittances to and from India by country
According to the former RBI Governor Shaktikanta Das, a lot of money was sent to India from other countries in 2022–23. In 2020, India also sent money to other countries. The tables below show the top ten countries where money came from to India and the top ten countries where money went from India in 2017. The Reserve Bank of India has different numbers.
India is a top place for money sent from people living abroad. This is because many Indians live in many parts of the world and send money home. In 2021, the amount of money sent to India grew a lot. By 2022, it was even more. In 2023, India received a lot of money, showing how important this money is for the country.
The main countries where money comes from to India include the United States, the United Arab Emirates, Saudi Arabia, and the United Kingdom. These countries have many Indian families who send money home to help their families. Having money come from many different places helps keep the flow of money steady.
Inward remittances by source country
According to RBI, the top countries where money came from to India in 2023-24 are as follows.
| Source country | 2016–17 (%) | 2020–21 (%) | 2023–24 (%) |
|---|---|---|---|
| United States | 22.9 | 23.4 | 27.7 |
| United Arab Emirates | 26.9 | 18.0 | 19.2 |
| United Kingdom | 3.0 | 6.8 | 10.8 |
| Saudi Arabia | 11.6 | 5.1 | 6.7 |
| Singapore | 5.5 | 2.4 | 6.6 |
| Kuwait | 6.5 | 1.5 | 3.9 |
| Qatar | – | 5.7 | 4.1 |
| Canada | 3.0 | 1.6 | 3.8 |
| Oman | 1.0 | 0.6 | 2.5 |
| Australia | – | – | 2.3 |
| Bahrain | 0.7 | 0.7 | 1.5 |
| Hong Kong | – | – | 1.3 |
| Germany | 0.6 | 0.6 | 1.0 |
| Belgium | 0.9 | 1.1 | 0.4 |
| Malaysia | – | – | 0.6 |
| New Zealand | 2.3 | 0.7 | 0.5 |
| Ireland | – | – | 0.4 |
| Netherlands | – | – | 0.5 |
| Japan | – | – | 0.3 |
| Switzerland | – | – | 0.4 |
| France | 0.1 | 0.1 | 0.2 |
| Italy | – | – | 0.1 |
| Indonesia | – | – | 0.2 |
| Thailand | – | – | 0.2 |
| South Africa | – | – | 0.1 |
| Spain | – | – | 0.1 |
| Others | 14.8 | 31.6 | 4.4 |
| Note: For 2023-24, shares are derived based on two major components of inward remittances – (a) transfers for family maintenance and savings; (b) local withdrawals from non-resident deposit accounts. Source: Data for 2016–17 and 2020–21 are sourced from the RBIs remittance surveys – RBI (2018) and RBI (2022a), respectively. | |||
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This article is a child-friendly adaptation of the Wikipedia article on Remittances to India, available under CC BY-SA 4.0.
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