Context:
India surpass $100 billion dollar remittances for the second consecutive year.
Key highlights of the survey
- A survey by the Reserve Bank of India (RBI) on post-Covid-19 remittances.
- India received $107 billion in remittances in the financial year 2023-24, surpassing the $100 billion threshold for the second consecutive year.
- This amount of net remittances nearly doubles the combined total of $54 billion from foreign direct investments (FDI) and portfolio investments during the same period.
- The United States is the primary contributor, constituting 23% of the total amount.
- The remittances from the Gulf region experienced a decline during 2023-24.
- In 2023, the United States remained the largest contributor to remittances globally.
- The leading recipients of these funds were India ($125 billion), followed by Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion).
- Remittances to low and middle income countries (LMICs) increased by approximately 3.8% in 2023.
World Bank on remittance
- The World Bank’s “Migration and Development Brief” showed that India continues to lead globally in receiving remittances from its diaspora.
- Under the Liberalised Remittance Scheme (LRS), resident individuals, including minors, have the liberty to remit up to USD 250,000 annually (April – March) for any allowable current or capital account transaction.
