Godavari at 13:14, 8 December 2025

2025-12-08T13:14:16Z

103.242.196.250: /* Remittances from India */

2021-12-29T19:01:03Z

Remittances from India

New page

{{Use Indian English|date=June 2020}}
{{Use dmy dates|date=June 2020}}
[[File:1951 Bombay Province Rs 2500 Hundi.jpg|thumbnail|right|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]].]]

'''Remittances to India''' are [[Wire transfer|money transfers]] (called [[remittance]]) from [[Non-resident Indian and person of Indian origin|non-resident Indians]] (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's top receiver of [[remittance]]s, claiming more than 12% of the world's remittances in 2015.<ref name="WorldBank20151218">{{cite web|url=http://www.worldbank.org/en/news/press-release/2015/12/18/international-migrants-and-remittances-continue-to-grow-as-people-search-for-better-opportunities-new-report-finds |title=International Migration at All-Time High |date=18 December 2015 |access-date=27 May 2016 |work=The World Bank }}</ref><ref name="BS20151218">{{cite web|url=http://www.business-standard.com/article/current-affairs/pakistan-4th-largest-source-of-remittances-to-india-115122400035_1.html |title=Pakistan 4th largest source of remittances to India |date=24 December 2015 |access-date=27 May 2016 |work=The Business Standard }}</ref> Remittances to India stood at {{USD|68.968|link=yes}} billion in 2017 and remittances from India to other countries totalled {{USD|5.710|link=no}} billion, for a net inflow of {{USD|63.258|link=no}} billion in 2017.<ref name="Pew"/><ref name=nri>{{cite web|url=http://www.nrirealtynews.com/stories/oct07/remittances-from-indians-abroad-push-india-to-top.php|title=Remittances from Indians abroad push India to the top |publisher=www.nrirealtynews.com |date=2007-10-22|access-date=2009-03-14}}</ref><ref name=Gupta>{{cite book|url=https://books.google.com/books?id=5bNsS0C8K3UC&q=remittance&pg=PA8| title=Macroeconomic Determinants of Remittances: Evidence from India|publisher=International Monetary Fund| access-date=2009-03-14|last=Gupta| first=Poonam|isbn=9781451862430|date=2005-12-01}}</ref>

As per the [[Ministry of Overseas Indian Affairs]] (MOIA), remittance is received from the approximately 35 million members of the [[Non-resident Indian and person of Indian origin|Indian diaspora]].<ref name=eco14/>

==History==
[[File:1951 Bombay Province Rs 2500 Hundi.jpg|thumbnail|right|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 | Hawala}}
{{empty section|date=February 2020}}

==Overview==
Under the [[Foreign Exchange Management Act]] (FEMA) of 1999, [[Non-resident Indian and person of Indian origin|Non Resident Indians]] (NRIs) and [[Non-resident Indian and person of Indian origin|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.<ref>{{cite web | title = Accounts in India by Non Resident Indians |url= https://rbi.org.in/Scripts/FAQView.aspx?Id=52#FQ3 }}</ref>
<ref>{{cite web | title =Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)|publisher= Reserve Bank of India| url = http://www.rbi.org.in/scripts/FAQView.aspx?Id=52#F2 | access-date = 2014-02-23 }}</ref>

Since 1991, India has experienced sharp [[remittance]] growth. In 1991 Indian remittances were valued at 2.1 billion [[USD]];<ref name=Gupta/><ref>{{cite web| url=http://www.migrationinformation.org/Feature/display.cfm?id=577 |title=The Rise in Remittances to India: A Closer Look|publisher=Migration Policy Institute|date=February 2007|access-date=2009-03-14|last=Chishti|first=Muzaffar}}</ref> in 2006, they were estimated at between $22 billion<ref>{{cite web|url=http://www.financialexpress.com/news/Remittances-to-India-touch-$22-billion/181655/ |title=Remittances to India touch $22 billion|publisher=The Financial Express|date=2006-10-26|access-date=2009-03-14}}</ref> and $25.7 billion.<ref name=nri/> which grew to $67.6 billion in 2012-13, up from $66.1 billion the fiscal year, 2011-2012,<ref name=eco14>{{cite web | title = Remittances from Indian diaspora on the rise |publisher=The Economic Times | url = http://articles.economictimes.indiatimes.com/2014-02-19/news/47489867_1_indian-diaspora-remittances-overseas-indians
|date=Feb 19, 2014| access-date = 2014-02-23}}</ref> when the remittance exceed the [[foreign direct investment]](FDI) inflow of $46.84 billion into India.<ref name=hin12>{{cite web | title = NRIs beat FDI, keep the money coming |publisher= Hindustan Times| url = http://www.hindustantimes.com/business-news/nris-beat-fdi-keep-the-money-coming/article1-941337.aspx | archive-url = https://web.archive.org/web/20140313025252/http://www.hindustantimes.com/business-news/nris-beat-fdi-keep-the-money-coming/article1-941337.aspx | url-status = dead | archive-date = 13 March 2014 |date=October 8, 2012| access-date = 2014-02-23}}</ref>

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, India|Punjab]], [[Andhra Pradesh]] and [[Uttar Pradesh]] which are among the top international remittance receiving states.<ref name=hin12/><ref>{{cite web| ssrn= 1780289|title= Remittances in India: Facts and Issues |publisher= IIMB Working Paper No. 331|date=March 2011|last=Tumbe|first=Chinmay}}</ref> Andhra Pradesh gets most of its remittance from the [[United States of America|USA]], 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.<ref>{{cite web| ssrn= 2117805|title= India Migration Bibliography|publisher= Indian Institute of Management Bangalore |date= July 2012|last=Tumbe|first=Chinmay}}</ref>

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.<ref>{{Cite web|url=https://exchangerateiq.com/send-money-to-india/compare-usd-to-inr?country_from=usa&amount=500&mode=send|title=Compare Money Transfer to India. Get Best USD to INR Exchange Rate|website=ExchangeRateIQ|language=en-US|access-date=2017-07-22}}</ref>

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.<ref name=hin12/>

However, owing to the onslaught of [[COVID-19]], the [[World Bank]] has estimated a 9% decline in the remittances to India.<ref>{{Cite web|date=30 November 2020|title=Remittances to India to drop by 9% in 2020: World Bank report|url=https://www.livemint.com/news/india/remittances-to-india-to-drop-by-9-in-2020-world-bank-report-11604022300215.html|access-date=30 November 2020|website=Live Mint}}</ref>

==Remittances to India by fiscal year==
The following table illustrates the remittances to India as percent of GDP, 1990–1991 to 2005–2010.<ref>{{cite web|last=Chishti|first=Muzaffar|title=The Rise in Remittances to India: A Closer Look|url=http://www.migrationinformation.org/Feature/display.cfm?ID=577|date=February 2007|publisher=Migration Information Source|access-date=2011-07-28|archive-url=https://web.archive.org/web/20101204064157/http://www.migrationinformation.org//Feature//display.cfm?ID=577|archive-date=2010-12-04|url-status=live}}</ref><ref>{{cite web|title=Figure 4. Remittances to India, 1970 to 2008|url=http://www.migrationinformation.org/charts/india-oct09-fig4.cfm|publisher=Migration Information Source|access-date=2011-07-28|archive-url=https://web.archive.org/web/20101204062345/http://www.migrationinformation.org/charts/india-oct09-fig4.cfm|archive-date=2010-12-04|url-status=live}}</ref><ref name="toi1">{{Cite web|url=http://timesofindia.indiatimes.com/business/india-business/India-is-top-remittance-recipient-of-2015-World-Bank/articleshow/51822766.cms|title=India world's largest remittance recipient in 2015: World Bank|access-date=2016-04-14|work=The Times of India}}</ref>

{| class="wikitable sortable" border="1"
|+Remittance by fiscal year
|-
! Year !! data-sort-type="numeric"|Remittances !! Percent GDP
|-
| 1990–1991 || align="right"|US$2.10 bn || align="right"|0.70%
|-
| 1995–1996 || align="right"|US$8.50 bn || align="right"|3.22%
|-
| 1999–2000 || align="right"|US$12.07 bn || align="right"|2.72%
|-
| 2000–2001 || align="right"|US$12.85 bn || align="right"|2.84%
|-
| 2001–2002 || align="right"|US$15.40 bn || align="right"|3.29%
|-
| 2002–2003 || align="right"|US$16.39 bn || align="right"|3.39%
|-
| 2003–2004 || align="right"|US$21.61 bn || align="right"|3.69%
|-
| 2004–2005 || align="right"|US$20.25 bn || align="right"|3.03%
|-
| 2005–2006 || align="right"|US$24.55 bn || align="right"|3.08%
|-
| 2006–2007 || align="right"|US$29.10 bn ||
|-
| 2007–2008 || align="right"|US$37.20 bn ||
|-
| 2008–2009 || align="right"|US$51.60 bn ||
|-
| 2009–2010 || align="right"|US$55.06 bn ||
|-
| 2011–2012 || align="right"|US$66.10 bn || align="right"|4.00% <ref name=hin12/>
|-
| 2012–2013 || align="right"|US$67.60 bn || <ref name=eco14/>
|-
| 2013-2014 || align="right"|US$70.39 bn ||<ref>{{cite web|url=https://blogs.wsj.com/indiarealtime/2015/04/15/india-wins-the-remittance-race-again/|title=India Wins the Remittance Race Again |publisher=The Wall Street Journal |date=2015-04-15|access-date=2015-09-10}}</ref><ref name=eco70>{{cite web| title = India tops global remittances list; received $70 billion in 2013: World Bank|publisher=The Economic Times| url = http://economictimes.indiatimes.com/news/nri/forex-and-remittance/india-tops-global-remittances-list-received-70-billion-in-2013-world-bank/articleshow/33623698.cms|date=11 April 2014| access-date = 2014-04-12}}</ref>
|-
| 2014-2015 || align="right"|US$66.30 bn||align="right"|<ref name="toi1"/>
|-
| 2015–2016 || align="right"|US$62.70 bn ||
|-
| 2016–2017 || align="right"|US$65.30 bn ||
|-
| 2017–2018 || align="right"|US$80.00 bn ||
|-
| 2018-2019 || align="right"|US$79.00 bn ||
|-
| 2019-2020 || align="right"|US$83.30 bn ||
|-
| 2020-2021 || align="right"|US$83.00 bn ||
|-
|}

==Remittances to and from India by country==
According to the [[Pew Research Center]] in 2017, the [[World Bank]] estimated that a total of US$68.968 billion was made in remittances to India from other countries, and a total of US$5.710 billion was made in remittances to other countries from India, for a net inflow of $63.258 billion. Figures for remittances between India and Pakistan are not available. The table on left lists the major source countries for remittances to India, and the table on the right lists the major destination countries for remittances from India in 2017.<ref name="Pew">{{cite web |title=Remittance flows by country 2017 |url=https://www.pewglobal.org/interactives/remittance-flows-by-country/ |website=Pew Research Center |access-date=7 April 2019}}</ref> Somewhat different figures have been estimated by the [[Reserve Bank of India]].<ref>{{cite web|access-date=2020-12-18|title=Reserve Bank of India - RBI Bulletin|url=https://m.rbi.org.in//scripts/BS_ViewBulletin.aspx?Id=17882|website=m.rbi.org.in}}</ref>
{{col-begin}}
{{col-break}}

===Remittances to India===
<small>Figures for remittances between India and Pakistan are not available.</small>
{| class="wikitable sortable" border="1"
!Rank
! Source country !! Amount (US$)
|-
|1
| [[United Arab Emirates]] || align="right"|13.823 billion
|-
|2
| [[United States]] || align="right"|11.715 billion
|-
|3
| [[Saudi Arabia]] || align="right"|11.239 billion
|-
|4
| [[Kuwait]] || align="right"| 4.587 billion
|-
|5
| [[Qatar]] || align="right"| 4.143 billion
|-
|6
| [[United Kingdom]] || align="right"|3.941 billion
|-
|7
| [[Oman]] || align="right"|3.250 billion
|-
|8
| [[Nepal]] || align="right"| 3.016 billion
|-
|9
| [[Canada]]|| align="right" |2.877 billion
|-
|10
| [[Australia]]|| align="right" |1.944 billion
|-
|11
| [[Bahrain]]|| align="right" |1.336 billion
|-
|12
| [[Sri Lanka]] || align="right" |1.265 billion
|-
|13
| [[Singapore]] || align="right" |886 million
|-
|14
| [[Italy]] || align="right"| 612 million
|-
|15
| [[New Zealand]] || align="right" |341 million
|-
|16
| [[Germany]] || align="right" |332 million
|-
! colspan="2" style="text-align:right;" |Total of top 15 || 62.057 billion
|-
| colspan="2" style="text-align:left;"|Other countries || 6.911 billion
|-
! colspan="2" style="text-align:right;"|Grand total || 68.968 billion
|}

{{col-break}}

===Remittances from India===
<small>Figures for remittances between India and Pakistan are not available.</small>
{| class="wikitable sortable" border="1"
!Rank
! Recipient country !! Amount (US$)
|-
|1
| [[Bangladesh]] || align="right"|4.033 Billion
|-
|2
| [[Nepal]] || align="right"|1.021 Billion
|-
|3
| [[Sri Lanka]] || align="right"|520 million
|-
|4
| [[China]] || align="right"|41 million
|-
|5
| [[France]] || align="right"|15 million
|-
|6
| [[Malaysia]] || align="right"|11 million
|-
|7
| [[Nigeria]]|| align="right" |10 million
|-
|8
|[[Germany]]|| align="right" |9 million
|-
|9
| [[Myanmar]] || align="right" |8 million
|-
|10
| [[Kenya]] || align="right" |7 million
|-
|11
| [[United States]] || align="right" |6 million
|-
| rowspan="2"|12
| [[Saudi Arabia]] || rowspan="2" align="right" |4 million
|-
| [[United Kingdom]]
|-
| rowspan="2"|13
| [[Australia]] || rowspan="2" align="right" |3 million
|-
| [[Bhutan]]
|-
! colspan="2" style="text-align:right;"|Total of top 16 || align="right" |6.698 billion
|-
| colspan="2" style="text-align:left;"|Other countries || align="right" |12 million
|-
! colspan="2" style="text-align:right;"|Grand total || align="right" | 6.710 billion
|}
{{col-end}}

== See also ==
; Remittance related
* [[Remittance|Global ranking of remittance by nations]]
* [[Hawala]]
* [[Hundi]]

; Indian economy related
* [[Economy of India]]
* [[Business process outsourcing to India]]
* [[Foreign trade of India]]
* [[List of exports of India]]
* [[List of the largest trading partners of India|Largest trading partners of India]]

; Factors influencing remittances to India
* [[Indian diaspora]]
* [[Remittance|Global ranking of remittance by nations]]
* [[Indosphere]]

; Others
*[[Negotiable Instruments Act, 1881]]
*[[Correspondent account]]

== References ==
{{reflist|3}}

== External links ==
*[http://moia.gov.in/ Ministry of Overseas Indian Affairs, Official website]
*[http://www.pewglobal.org/interactives/remittance-map/ Remittance Flows Worldwide in 2015 - Pew Research Center]

{{Social issues in India}}
{{Economy of India}}

[[Category:Remittances|I]]
[[Category:Economy of India]]
[[Category:Indian diaspora]]
[[Category:Investment in India]]

Remittances to India - Revision history

Godavari at 13:14, 8 December 2025

103.242.196.250: /* Remittances from India */