SafekipediaRemittances to India
Adapted from Wikipedia · Discoverer experience
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 top receiver of remittances, claiming more than 12% of the world's remittances in 2015. These transfers have grown significantly over the years, reaching US$125 billion in 2023, up from US$69 billion in 2017.
These funds come from about 35 million members of the Indian diaspora, as noted by the Ministry of Overseas Indian Affairs. Remittances play a key role in India's economy, helping families with their incomes and supporting the country's overall development. They provide stability and are important for both the families receiving the money and the nation's economic health.
History
Overview
Remittances to India are money sent by Indians living outside the country to their families back home. India receives 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 following table shows how much money sent to India was 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 total of US$107.5 billion in 2022–23 was sent to India from other countries. In 2020, India sent US$7.01 billion to other countries. The tables below list 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 estimated somewhat different numbers.
India is a top receiver of money sent from people living abroad. This is because many Indians live in many parts of the world and send money home through banks, electronic transfers, and other services. In 2021, the amount of money sent to India grew to about $105.6 billion. By 2022, it reached more than $111 billion, showing India’s place as a top place for these money transfers. In 2023, India received about $125 billion, which shows 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 and invest in different areas. Having money come from many different places helps keep the flow of money steady, even when some areas have economic problems.
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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