Remittances to India

India is the top remittance receiving country in the world; PH ...

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Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's leading receiver of remittances, claiming more than 12% of the world's remittances in 2015. Remittances to India stood at US$68.91 billion in 2015, accounting for over 4% of the country's GDP. As per the Ministry of Overseas Indian Affairs (MOIA), remittance is received from the approximately 25 million members of the Indian diaspora. India, while retaining its top spot as the world's largest remittance recipient, led the decline with remittance inflows amounting to $62.7 billion last year, a decrease of 8.9 per cent over $68.9 billion in 2015

A total of US$8.476 billion was made in remittances by foreign workers in India to their home countries.

Video Remittances to India

Overview

Under the Foreign Exchange Management Act (FEMA) of 1999, Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can open and maintain 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. NRO Accounts are not repatriable except for all current income. Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets. NRE Accounts are repatriable. Credits permitted to NRE account are inward remittance from outside India, interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds of investments (if such investments were made from this account or through inward remittance). Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO 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 India's remittances flow to the states of Kerala, Andhra Pradesh, Tamil Nadu, Punjab and Uttar Pradesh 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.

In recent years a lot of Indian Immigrants abroad have started using online money transfer services to send money from overseas to India. A lot of Online and mobile companies have come up in recent years that have facilitated the transition to online remittances. Even some Indian banks have started offering such services in over last few years.

A 2012 study, by Reserve Bank of India revealed 30.8% of total foreign remittances was from West Asia, compared to 29.4% from North America and 19.5% from Europe.

Maps Remittances to India