Changing Dynamics of India’s Remittances highlighted by Reserve Bank of India (RBI) | Current Affairs | Vision IAS
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    Changing Dynamics of India’s Remittances highlighted by Reserve Bank of India (RBI)

    Posted 20 Mar 2025

    2 min read

    Data from Sixth Round of India’s Remittances Survey for 2023-24 has been used.

    • When migrants send home part of their earnings in the form of either cash or goods to support their families, these transfers are known as Remittances.
    • Paper also highlighted that India’s stock of international migrants has tripled from 6.6 million in 1990 to 18.5 million in 2024.

    Key Highlights

    • Status: India has consistently been the top recipient of remittances globally since 2008. (World Bank)
      • Remittances have more than doubled from US$ 55.6 billion in 2010-11 to US$ 118.7 billion in 2023-24. 
        • As a ratio to GDP, India’s remittances have been around 3 % of GDP since 2000.
    •  Source Countries: The share of advanced economies in India’s inward remittances has risen, surpassing the share of Gulf economies (such as UAE), reflecting a shift in migration pattern towards skilled Indian diaspora.
      • Remittances from the United States (largest contributor) and the United Kingdom together nearly doubled to 40% of the remittances. 
    • State-wise Distribution: Maharashtra, followed by Kerala and Tamil Nadu continue to be the dominant recipient states. 
    • Cost of Remittances declined: For India, it is lower than the global average cost, driven by digitalisation. 
    Image showing significance of Remittances
    • Tags :
    • Remittances
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