Remittance Surge

• Remittances to India increased by 26% to $112 billion in FY23 from $89 billion in FY22.

Global Demand

• The rise in remittances reflects the increased demand for Indian professionals worldwide post-pandemic.

What Are Remittances?

• Remittances are funds sent by migrants to their home countries.
• Vital income and foreign exchange for developing nations, especially in South Asia.

Offsetting Trade Deficit

• Private remittances help balance India's current account and offset trade deficit from merchandise trade.
• Classified as part of a country's balance of payments.

India's Leading Role

• India consistently tops as the world's largest remittance recipient.
• Contrasts with lower FDI inflows ($71B in FY23).

Top Recipient Countries (2022)

1. India
2. Mexico
3. China
4. Philippines
5. Pakistan

Major Sources of Remittances to India (2020-21)

1. USA (23.4%)
2. UAE (18%)
3. UK (6.8%)
4. Singapore (5.7%)
5. Saudi Arabia (5.1%)

Innovations in Remittance

• January 2023: NRIs in 10 countries can use UPI via international mobile numbers for instant remittances.

Remittances play a crucial role in India's economy, driving financial stability and growth.