Remittances to India up by 26% in FY23: Finance Ministry

This notable surge highlights the heightened demand for Indian professionals worldwide following the global pandemic

August 14, 2023

During FY22, remittances reached US$ 89.1 billion

India has consistently maintained its position as the leading recipient of global remittances

The United States contributed the highest remittances to India at 23.4%

India's Foreign Direct Investment (FDI) in FY23 stood at US$ 70.97 billion

Remittances to India from non-resident Indians experienced a substantial increase of 26% compared to the previous year, reaching approximately US$ 112.5 billion, in FY23, according to data from the Finance Ministry. This notable surge highlights the heightened demand for Indian professionals worldwide following the pandemic.

During the fiscal year 2021-22, remittances reached US$ 89.1 billion. India has consistently maintained its position as the leading recipient of global remittances for multiple consecutive years.

According to the data, this remittance surge comes when FDI flows between countries have decelerated, despite introducing 14 production-linked incentive schemes, India’s FDI in FY23 stood at US$ 70.97 billion, a decrease from the US$ 84.8 billion recorded in FY22.

Based on a survey conducted by the Reserve Bank of India for 2020-21, the top 10 countries contributing to inward remittances to India have a significant impact. The United States holds the highest share at 23.4% of total remittances, followed by the United Arab Emirates (18%), the United Kingdom (6.8%), Singapore (5.7%), and Saudi Arabia (5.1%).

Additionally, private remittances play a pivotal role in bolstering India’s current account, mainly as the country’s trade in merchandise often results in a deficit.

Source: Financial Express

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