Highest Recipient
Remittances to India seen rising to $160 bln in 2029, says RBI report
This story was originally published at 16:56 IST on 30 July 2024
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NEW DELHI - Remittances to India are likely to increase to around $160 bln in 2029 from $115 bln last year, as the country moves towards becoming the world's biggest supplier of labour by 2048, the Reserve Bank of India said in its report on Currency and Finance for 2023-24 (Apr-Mar). India remains the biggest remittance recipient globally, with its inward remittance receipts making up for 13.5% of the world's total in 2023.
"The global demand for Indian migrant workers will remain high, which along with continuing skill upgradation of the workforce would provide a sustained boost to inward remittances," the report said.
Bulk of remittances to India come from Gulf nations, the report said. In 2021, over 50% of India's inward remittances were from the Gulf countries, while North America accounted for 22% of the total funds.
The ratio of remittances to GDP in India has gradually increased to 3.2% in 2023 from 2.8% in 2000. India's remittance to GDP ratio is now higher than the gross foreign direct investment inflows to GDP ratio, which was 1.9% in 2023. This, the report said, is providing strength to India's external sector.
The cost of sending remittances to India has also decreased over time, thanks to digitalisation, the report said. The average cost of receiving remittances in India was 5.01% in Jan-Mar, lower than 5.04% in the previous quarter, but higher than the Sustainable Development Goal of 3% per $200 remittance.
The global average cost of sending $200 as remittance was 6.35% in Jan-Mar. The cost of remittance to India in Oct-Dec from Singapore, Malaysia, the UK, Kuwait, Italy and Bahrain was within the Sustainable Development Goal of 3%, while the cost from Thailand and South Africa was more than 10%, the report said. End
US$1 = 83.73 rupees
Reported by Shubham Rana
Edited by Vandana Hingorani
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