New Delhi11 minutes ago
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When a migrant sends money to his original country, it is called Remittens. This is a means of earning foreign currency.
Indians living abroad sent a record 135.46 billion (about Rs 11.60 lakh crore) to their country in FY 2024-25. This amount is 14% higher than the previous year and has increased more than double than $ 61 billion (Rs 5.22 lakh crore) in eight years ago i.e. 2016-17. According to the latest data from the Reserve Bank of India (RBI), India has remained the country to receive the highest remedies in the world for more than a decade.
45% of the total Remittens comes from developed countries
According to a research by RBI, 45% of the total remedies come from developed countries such as the US, Britain and Singapore. Earlier, where the Gulf countries (GCC – Saudi Arabia, UAE, Kuwait, Qatar) used to come to India, now their share is decreasing.
The reason for this is that now the number of Indian skilled professionals is increasing rapidly in countries like the US, Britain and Singapore. These people are doing good salary jobs in areas like IT, engineering, medical and management.
According to IDFC First Bank Chief Economist Gaura Sengupta, “This boom in Remittens remains even when crude oil prices have declined. The reason is that now Indian people are going more in less oil-dependent economies like America and the UK.”
- Earlier in the Gulf countries, most of the blue-collar workers (such as construction workers, drivers, laborers) used to work, but now the demand for India’s skilled professionals is increasing.
- The number of Indians in the US is around 45 million, most of which are higher education. Of these, 43% have graduate degrees, which is much higher than American citizens (13%).
Remittens impacts India’s economy
Remittens also plays a big role in reducing the country’s trade deficit. India’s goods trade deficit in FY25 was $ 287 billion, and Remittens covered about 47% of it. That is, this money is contributing significantly in strengthening the country’s economy.
Where does the money of remedies go?
In India, the most benefits of Remittens are available to those states from where people go abroad and work. States like Kerala, Tamil Nadu, Punjab, Andhra Pradesh and Uttar Pradesh are at the forefront of this matter. Especially in Kerala, the effect of Remittens is so high that it is 36.3% of the Net State Domestic Product (NSDP) there. This money is spent in the needs of families, education of children, building houses and starting small businesses.
What is Remittens?
When a migrant sends money to his original country, it is called Remittens. This is a means of earning foreign currency. Remittens are also an important source of domestic income for low and moderate income countries. In India, Indians settled in Gulf countries are more contributing in terms of remedies in India. Apart from this, remedies come to India from developed countries like America, Britain, Australia and Canada.
