Ranked 6th among Indian states
Remittances play a significant role in supporting many NRI families residing in India by helping them carry out their day-day household activities and overall family maintenance.
It therefore is not only an important source of funds for families but also play a crucial part in financing the country’s trade deficit.
As per RBI net remittance receipts finance around half of India’s merchandise trade deficit, while have been an important absorber of external shocks during this period.
In RBI’s recently released March bulletin it noted that India’s remittances have more than doubled from US$ 55.6 billion in 2010-11 to US$ 118.7 billion in 2023-24.
Similarly, an article published in the bulletin (“Changing Dynamics of India’s Remittances – Insights from the Sixth Round of India’s Remittances Survey”) it stated Maharashtra followed by Kerala and Tamil Nadu, continued to be the dominant recipient of remittances.
Disclosing numbers for FY 24 it said that the state of Maharashtra raked in a staggering USD 20.5 billion in remittances, Kerala at USD 19.7 billion, Tamil Nadu at 10.4 billion, Telangana at USD 8.1 billion and Karnataka at USD 7.7 billion (see pie graph pg 1).
The state of Andhra Pradesh came in at 6th position by receiving total inward remittances of USD 4.4 billion in FY 24.
Interestingly as per the data AP received a similar amount in FY 21 and USD 4 billion in FY 17.
The results of the survey also highlight the gradual shift in dominance of India’s remittances from the GCC countries to the AEs (advance economies) particularly the US, the UK, Singapore, Canada and Australia which together accounted for more than half of the remittances in 2023-24.
In addition the survey cited that the share of the US in India’s total remittances remained largest, rising to 27.7 per cent in 2023-24(see graph pg 1) from 23.4 per cent in 2020-21 reflecting a steady recovery in the US job market.
United Arab Emirates (UAE) maintained its position as the second largest source of India’s remittances. Another interesting observation made by the report was the cost of sending remitta- nces to India is lower than the global average.
‘The global average cost of sending US$ 200 witnessed a secular decline from 9.67 per cent in Q1:2009 to 6.65 per cent in Q2:2024, however in the case of India, it is 4.9%.
