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

  • Odisha to get more funds in Finance Commission: Pradhan

    Bhubaneswar, March 1 (IANS) Refuting allegations that Odisha would lose revenue following the recommendations of the 14th Finance Commission, union Petroleum Minister Dharmendra Pradhan said on Sunday that it would get about Rs.8,000 crore more funds per annum compared to the 13th commission allocations. Though the share of Odisha in tax devolution has decreased, the quantum of fund allocation has been increased and the state would receive more funds, Pradhan said. In the 14th Finance …

  • Tyre industry wants correction in duty structure

    Chennai, March 1 (IANS) Welcoming the budget announcement of Rs.14,000 crore investment in the road sector, completing 100,000 km of roads and sanctioning construction of another 100,000 km, a leading tyre manufacturer also called for correction of the duty structure for the industry. In a statement issued here, Raghupati Singhania, chairman and managing director, JK Tyre and Industries Ltd said an outlay of Rs.14,000 crore in road sector and completing one lakh km of roads currently under …

  • Jet fuel rates raised by 8 percent, non-subsidised LPG by Rs.5

    New Delhi, March 1 (IANS) Indian Oil Corp (IOC), the nation's largest oil company, on Sunday increased Aviation Turbine Fuel (ATF) -- or jet fuel -- prices by a steep 8.2 percent and of non-subsidised ... …

  • China's Huawei enters smartwatch frenzy with round-face models
    China's Huawei enters smartwatch frenzy with round-face models

    Chinese telecom equipment maker Huawei on Sunday launched its first smartwatch, a round-faced device that works with Android phones, joining a crowded market weeks before the introduction of the highly anticipated Apple Watch. At an event tied to the Mobile World Congress in Barcelona, the firm unveiled its Huawei watch line in classic, business and sporty versions, while at the same time across town, Korea's LG Electronics launched a similar round-faced model. Both are following the lead of …

  • Modi passes budget test despite lack of reform dazzle

    NEW DELHI/MUMBAI (Reuters) - India's reform-minded prime minister, Narendra Modi, appears to have passed a major test with a budget that pleased economists and investors with pledges to spend more on modernising India's ageing roads and railways while keeping borrowing in check. The budget presented by Finance Minister Arun Jaitley on Saturday loosened the reins on public spending to drive growth, but promised lower-than-expected borrowing despite raising the fiscal deficit target. While it …

  • Eicher Motors sells 30,240 units in February

    Chennai, March 1 (IANS) Two-wheeler maker Eicher Motors Ltd Sunday said it closed last month selling 30,240 units, logging a growth of 49 percent over the corresponding period last year. The company making Royal Enfield bikes said it is targeting to roll out 450,000 this calendar year. These technology centres will significantly enhance capability to execute Royal Enfield's long term product strategy. According to Eicher Motors, it would be investing Rs.500 crore in 2015 in all strategic …

  • Insurance sector fears being pulled into 'Cess Pool', wants clarity on …

    Chennai, March 1 (IANS) Generally satisfied at the budgetary proposals of union Finance Minister Arun Jaitley for 2015-16, insurance industry officials however expressed their fears of being pulled into the "cess pool" of the Swachh Bharat Cess. Experts also told IANS that a clear legal clarity is needed on the proposal to hike the limit for deduction on health insurance premium. Presenting the budget Saturday, Jaitley proposed to create a new cess called Swachh Bharat Cess, for which a cess …

  • Drop-tops belly-flop as austerity breeds pragmatic car buyers

    The mass-market convertible car emits its last gasp this week at a Geneva motor show bristling with sport utility vehicles and low-cost models -- more evidence of the pragmatism of European consumers marked by years of austerity. Mainstream brands from Peugeot to Volkswagen are quietly axing cabriolets, as customers with cash to spend increasingly plump for a crossover, or choose to buy a low-cost car and keep the change. Outside the luxury market, "today's buyers want either a safe family …



  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


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.
to view quotes in your portfolios.