Remittances: Kerala drives dollar flows to India


The money sent by non-resident Indians to their families back home in India is important. At a time when the Indian rupee was in a free fall, remittances in foreign exchange from non-resident Indians grew rapidly. This helped the rupee stabilize and regain some strength.

Here are some facts about remittances:
1. India is the biggest recipient of foreign remittances from non-residents. In 2012, non-resident Indians wired $71 billion to India. At a time when India owed a significantly high amount of foreign currency to the world due to rising imports of oil and gold, these remittances came as a relief. Exports are another source of income in foreign exchange for a country. However, India’s current account deficit rose sharply as exports fell too. This resulted in the rupee falling. Foreign remittances continued to grow steadily.

2. Kerala receives the highest amount of foreign remittances among Indian states at $11.3 billion in 2012, according to UAE Exchange, an Abu Dhabi based company that claims a 10% market share in global remittances to India. The firm noticed that non-resident Indians borrowed money in UAE and remitted it to India.

3. Tamil Nadu comes second accounting for 13% of remittances, followed by Punjab at 6%. Tier III cities in Uttar Pradesh and Bihar are also witnessing a significant rise in remittances. The growth in these states is as high as 25%, according to UAE Exchange.


4. For the quarter to June 2013, remittances were at $16.4 billion, the highest in five straight quarters, according to Reserve Bank of India data. A weak rupee is expected to drive further remittances to India.  “Inflation has to be controlled in India,” said Promoth Manghat, VP-Global Operations, UAE Exchange while calling the economic slowdown in India ‘a temporary phase’.

5. Global remittances stood at around $414 billion in 2012, according to the World Bank data. In 2013, worldwide remittances are expected to go up to $550 billion. The World Bank predicts that this could go up to $700 billion by 2016.

Related video


Related Stories
At $71 billion, India tops global remittances list
Developing countries that received most remittances in 2012

This work is produced by Simplus Information Services Pvt Ltd. Customer engagement through content.

 Like this article? Click here for more articles from the same provider.

Latest News

  • Energy drags Wall St lower; S&P down slightly in August
    Energy drags Wall St lower; S&P down slightly in August

    Stocks ended lower on Wall Street on Wednesday, as energy shares tracked oil prices lower, and the S&P posted a loss for August, the first negative month for the benchmark index since February. The Nasdaq gained 1 percent in August and the S&P shed 0.1 percent, speaking to stocks' resiliency after the S&P hit an all-time high mid-month. The energy sector of the S&P 500 ended 1.4 percent lower on Wednesday, its largest daily decline in three weeks, as U.S. crude futures fell more than 3 …

  • After Apple, EU may focus on companies closer to home
    After Apple, EU may focus on companies closer to home

    Multinational companies can expect the European Commission to press on with a crack down on sweetheart tax deals after handing Apple a breathtaking demand for 13 billion euros, officials and experts said on Wednesday. The order to the iPhone maker to pay back taxes to Ireland on the grounds that Dublin illegally favoured Apple with a tax regime that amounted to a competition-distorting subsidy was the biggest of 38 decisions by Vestager since the Commission began probing some 1,000 companies …

  • Oil tumbles on U.S. inventory builds; best month since April
    Oil tumbles on U.S. inventory builds; best month since April

    Oil prices fell 3 percent or more on Wednesday, paring their big gains for August, after government data showed a large surprise weekly build in U.S. crude and distillate stockpiles and a smaller-than-expected drawdown in gasoline. Crude futures rose as much 11 percent in August, posting their best monthly return since April, helped by speculation that the Organization of the Petroleum Exporting Countries and other oil producers might agree to curb output at September talks in Algeria. …

  • Expert views: India's economic growth slows down
    Expert views: India's economic growth slows down

    Analysts polled by Reuters had forecast 7.6 percent growth in gross domestic product during the April-June quarter. "Growth continues to be driven by government spending while private spending remains muted, which is a worry. …

  • Indian growth slows sharply in April-June quarter
    Indian growth slows sharply in April-June quarter

    India's economic growth hit a 15-month low between April and June, putting Prime Minister Narendra Modi's target further out of reach and making it tougher for him to create millions of new jobs for a burgeoning workforce. While 7.1 percent GDP expansion was well below economists' predictions and the 7.9 percent growth registered in the preceding quarter, it was still faster than figures reported by China and the Philippines. New Delhi is targeting average growth of around 8 percent, which …

  • Kerry urges Pakistan to push harder against extremists

    U.S. Secretary of State John Kerry said Pakistan had made progress in the fight against extremism in recent months, but urged Islamabad to push harder against militants hiding within its borders as tensions with neighbourng India rise amid more violence in the disputed region of Kashmir. "It is clear that Pakistan has work to do in order to push harder against its indigenous groups that are engaged in extremist activities," Kerry said on Wednesday, the second day of a visit to India. Kerry …

  • Kerry meets Modi as monsoon chaos challenges India's "smart" future

    U.S. Secretary of State John Kerry experienced some of the challenges that lie in the way of India's economic rise, as monsoon floods in New Delhi became a talking point at his meeting with Prime Minister Narendra Modi. "It looks like the rains this time have warmly welcomed you," Modi said as he greeted Kerry and the U.S. delegation on Wednesday for talks. Kerry's motorcade was caught in two hours of traffic chaos when he arrived in Delhi on Monday night for the annual U.S.-India Strategic …

  • OPEC oil output hits record as Gulf gains counter African losses

    OPEC's oil output is likely in August to reach its highest in recent history, a Reuters survey found on Wednesday, as extra barrels from Saudi Arabia and other Gulf members make up for losses in Nigeria and Libya. Production in top OPEC exporter Saudi Arabia has likely reached a fresh record, sources in the survey said, as it meets seasonally higher domestic demand and focuses on maintaining market share. The gain could add to scepticism about renewed OPEC talk of freezing output to support …

DON'T MISS

  • Why pumping money into PSUs is a bad idea

    Last year, the government provided budgetary and extra budgetary support of Rs 92,000 crore to its companies and only got back Rs 56,000 crore as dividends. Here's why it shouldn't keep throwing more money ... …

  • Coming To Grips

    The evolving institutional framework for financial markets is prompting RBI to shed discretionary powers. …

  • calendar

    Towards Product Nation WHAT: Conference on Building World Class Manufacturing WHEN: 31 August, Noida, UP WHAT TO LOOK FOR: The theme for the third edition of the conference is 'Enhancing National Competitiveness', ... …

  • How to Stabilise Prices

    The determinants of inflation are complex, and change quite quickly …

  • Is Your PF Money Safe?

    Though many companies are defaulting on PF deposits, the problem is far from alarming. …

  • Prabhu's rail reforms face extraordinary odds

    Fixing the Indian Railways won't be easy. It connects the entire country through 68,525 km of route track (in 2014), 12,961 passenger trains, and 8,637 freight trains. It also runs 125 hospitals, 586 polyclinics, ... …

  • Long road ahead for GST before implementation

    The tasks listed so far are the easier ones. The real challenge will be building a consensus on the model GST law and draft rules for Central GST, Integrated GST and State GST. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    299.30+74.30+33.02%
    RBLBANK.BO
    48.85+2.10+4.49%
    WELSPUNIND.BO
    27.50+4.55+19.83%
    HCC.BO
    11.66+0.39+3.46%
    JPASSOCIAT.BO
    23.15+2.40+11.57%
    PUNJLLOYD.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    299.30+74.30+33.02%
    RBLBANK.BO
    108.00+18.00+20.00%
    BINNY.BO
    67.55+11.25+19.98%
    VIRINCHI.BO
    109.60+18.25+19.98%
    HINDNATGLS.BO
    27.50+4.55+19.83%
    HCC.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    77.70-19.40-19.98%
    MBLINFRA.BO
    15.70-2.50-13.74%
    FILTRA.BO
    290.00-42.55-12.80%
    KIRIINDUS.BO
    43.75-5.65-11.44%
    MAHABIR.BO
    38.35-4.25-9.98%
    ECORECO.BO

QUOTES

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.