NRIs sent $112 bn home in FY23, most in 5 years
NEW DELHI : Inward foreign remittances to India grew 26% in the last financial year to $112.5 billion, clocking its highest growth in the last five years amid a rebound in economic recovery after the pandemic, showed latest data from the finance ministry. Inward foreign remittances stood at $89.1 billion in FY22, $80.2 billion in FY21, $83.2 billion in FY20, and $76.4 billion in FY19.
Countries like the US and United Arab Emirates (UAE) held the top share in India’s inward remittances. Other countries, which contributed to large volumes of inward foreign remittances included the UK, Singapore, Saudi Arabia, Kuwait, Oman, Qatar, Hong Kong, and Australia.
Interestingly, the World Bank expects the flow of foreign remittances in South Asia to slow to a 0.3% rise this calendar year due to subdued growth in the OECD economies, especially in the high-tech sector in the US which affects demand for IT workers. In comparison, during 2022, remittances were supported by strong oil prices in the Gulf Cooperation Council (GCC) countries, which increased migrants’ incomes, large money transfers from the Russian Federation to countries in Central Asia, and the strong labour market in the US and advanced migrant destination economies, World Bank said in a June report.
During 2022, remittance flows to South Asia grew by more than 12% to $176 billion. According to the World Bank, the top five recipient countries globally for remittances in calendar year 2022 were India ($111 billion), Mexico ($61 billion), China ($51 billion), the Philippines ($38 billion), and Pakistan ($30 billion).
Remittances often act as buffer for external shocks faced by India, especially at a time when trade deficit widens. During calendar year 2022, inward
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