Remittances to India
Remittances to India are money transfers from Non-resident Indians (NRIs), employed outside the country to family, friends or relatives in India. India is the world's leading receiver of remittances, claiming more than 12% of the world's remittances in 2007.
Remittances to India stood at $67.6 billion in 2012-13, accounts for over 4% of the country's GDP. This grew to $70 billion in 2013-14, the highest amongst the countries receiving remittances from overseas workers. As per the Ministry of Overseas Indian Affairs (MOIA), remittance is received from the approximately 25 million members of the Indian diaspora.
Under the Foreign Exchange Management Act (FEMA) of 1999, Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can keep 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.
Since 1991, India has experienced sharp remittance growth. In 1991 Indian remittances were valued at 2.1 billion USD; in 2006, they were estimated at between $22 billion and $25.7 billion. which grew to $67.6 billion in 2012-13, up from $66.1 billion the fiscal year, 2011-2012, when the remittance exceed the foreign direct investment(FDI) inflow of $46.84 billion into India.
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 international remittances flow to the three states of Kerala, Punjab, Uttar Pradesh and Goa which are among the top international remittance-dependent economies of the world. Research work on remittances to India is listed in the India Migration Bibliography.
Remittance by fiscal year
|2011–2012||66.1 ||4% |
1 United States dollar = 62 Indian rupees
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- "Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)". Reserve Bank of India. Retrieved 2014-02-23.
- Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Policy Institute. Retrieved 2009-03-14.
- "Remittances to India touch $22 billion". The Financial Express. 2006-10-26. Retrieved 2009-03-14.
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- Tumbe, Chinmay (March 2011). "Remittances in India: Facts and Issues". IIMB Working Paper No. 331. Retrieved 2012-11-05.
- Tumbe, Chinmay (July 2012). "India Migration Bibliography". Indian Institute of Management Bangalore. Retrieved 2012-11-05.
- Chishti, Muzaffar (February 2007). "The Rise in Remittances to India: A Closer Look". Migration Information Source. Archived from the original on 2010-12-04. Retrieved 2011-07-28.
- "Figure 4. Remittances to India, 1970 to 2008". Migration Information Source. Archived from the original on 2010-12-04d=. Retrieved 2011-07-28.
- Ministry of Overseas Indian Affairs, Official website
- World Bank Comparison of Remittances to India
- Different ways to send money to India