Remittances to India

[6] Remittances to India have long been a cornerstone of the nation's economy, significantly contributing to household incomes, economic stability, and overall development.

[8] This migration, predominantly to regions like the Caribbean and Southeast Asia, served the economic interests of the British Empire while significantly impacting the socio-economic landscape of India.

The remittances sent back by these migrant workers played a crucial role in supporting families left behind, contributing to local economies, and fostering economic ties between regions.

During the latter half of the 20th century, Indians increasingly moved to countries in the Middle East, North America, and Europe in search of better employment opportunities.

[17] A 2012 study, by Reserve Bank of India revealed 30.8% of total foreign remittances was from West Asia, compared to 29.4% from North America and 19.5% from Europe.

[23] India's status as a leading recipient of remittances is driven by its extensive network of expatriates spread across the globe, who send money home through various channels, including traditional banks, ACH or wire transfers, and digital providers.

In 2021, remittances surged to approximately $105.6 billion, reflecting ongoing support from overseas Indian communities amidst global economic uncertainties.

By 2022, remittances surged to the highest value of $111+ billion, affirming India's position as a top destination for financial transfers worldwide.

[24] In 2023, India received an estimated $125 billion in remittances, marking a significant increase and highlighting the continued importance of these financial inflows to the Indian economy.

These countries host large Indian communities that regularly send home money to support their families and invest in various sectors.

The diversity in the sources of remittances ensures a stable and continuous flow of funds, even when specific regions face economic challenges.