16 Aug Remittances to India by NRIs grew 26% to $112.5 bn in FY23
REMITTANCES TO the country by non-resident Indians rose 26 per cent on year to about $112.5 billion in FY23, underscoring tressed. the surge in demand for Indian professionals globally after the pandemic.
Remittances to India were $89.1 billion in FY22. India con- tinues to be the top recipient of remittances globally for the last several years.
The latest data from the finance ministry indicates that the trend of sustained and fast- paced increase in “personal transfers” to India, which was interrupted during FY21 due to the pandemic, has not only resumed but also been but tressed.
The surge in remittances is at a time when FDI flows across national borders seem to have slowed.
Despite launching 14 pro- duction-linked incentive schemes, India attracted $70.97 billion FDI in FY23, down from 84.8 billion in FY22.
The share of the 10 major countries in inward remittances to India, based on a survey con- ducted by the Reserve Bank of India for 2020-21, showed that the USA was the top source with a share of 23.4 per cent in total remittances. It was followed by UAE with 18 per cent, UK (6.8 per cent), Singapore (5.7 per cent) and Saudi Arabia (5.1 per cent).
Private remittances are a major boost to India’s current account, even as the country’s merchandise trade often results in a deficit.