Remittances to India in FY23 surged by 26% to $112.5 billion

Non-resident Indians (NRIs) sent an impressive 26% year-on-year increase in remittances to the country, totaling approximately $112.5 billion in FY23. This growth underscores the heightened demand for Indian professionals worldwide post-pandemic.

In the previous fiscal year, FY22, remittances to India had amounted to $89.1 billion. Remarkably, India has maintained its position as the leading recipient of global remittances for several consecutive years.

New data from the finance ministry highlights the sustained and swift upswing in "personal transfers" to India. This momentum, which was disrupted in FY21 due to the pandemic, has not only been reestablished but also reinforced. This surge in remittances coincides with a time when foreign direct investment (FDI) flows between nations appear to have decelerated. Despite the launch of 14 production-linked incentive schemes, India recorded $70.97 billion in FDI for FY23, a decline from $84.8 billion in FY22.

As per a Reserve Bank of India survey for 2020-21, the USA stood out as the primary source of inward remittances, accounting for 23.4% of the total. Following were the UAE (18%), UK (6.8%), Singapore (5.7%), and Saudi Arabia (5.1%).

Private remittances play a crucial role in bolstering India's current account, compensating for the country's often deficit-prone merchandise trade.

Content source: Media reports