Indians overseas earn and send a record $29 Billion

Highlights: Indians overseas send a record $29 Billion

• Indians overseas sent $29 billion in December as regularly increasing returns from FCNR.
• India has been the biggest recipient of money transfers from its migration ever.
• Remittances are a source of permanent flows, and help reduce the current account deficit (CAD).
• World Bank data showed more than $100 billion in inflows in 2023.

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Overseas Indians sent home $29 billion in Q3.

Overseas Indians sent home $29 billion as payment in Q4 as frequent returns from FCNR (foreign currency - non-resident) instruments have made savings plans more profitable.

Remittances are a source of permanent flows and different repatriable NRI deposits, and these help in decreasing the current account deficit (CAD), which has steadily declined as a percentage of India's GDP (gross domestic product).

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Net inward remittances

In December 2023, the preliminary data published by the Reserve Bank of India (RBI) shows that Net inward remittances in the private transfers in the current account amounted to $29 billion. An ET analysis of the data since 1991 showed that this is the highest rate of remittances by Indian migration in any quarter.

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Remittances are linked to migration in other economies and job situations. The RBI conducted a post-Covid survey on remittances, which showed that the US is the largest source of remittances, accounting for 23% of the total.

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Madan Sabnavis, chief economist at Bank of Baroda, said, "This could be due to a good year globally - and the US in particular."

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India has been the biggest recipient.

India has been the biggest receiver of remittances from its migration ever since the 1990s, transforming its technical talent landscape, and the third-largest Asian economy is evaluated to have received more than $100 billion in 2023, World Bank data showed.

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An RBI survey on remittances showed that, these remittances are going toward family needs, while little is invested in other assets such as deposits. Besides the increase in services exports, higher remittances also contributed to helping the current account deficit at 1.2% of GDP from 2022 to 2023, an analysis of the balance of payments data showed.

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