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

  • Risk assets rebound but high volatility persists

    The price of shares and other risk assets staged a tentative recovery in early Asian trade on Thursday though volatility remained high as investors fretted over global economic health. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.3 percent, hovering about 2.8 percent above the three-year low hit last week, while Japan's Nikkei (.N225) gained 1.4 percent. Also helping to boost the market, Apple (AAPL.O), the world's largest company by market capitalisation, …

  • Stocks rise as China fears ease; oil rebounds

    Global stock indexes rose on Wednesday, helped by reports of brokerage measures in China to invigorate the country's battered markets, while oil bounced from earlier losses to end nearly 2 percent higher. An upward revision in U.S. productivity data and a Federal Reserve report saying U.S. labour markets were tight enough to fuel small wage gains in some professions in recent weeks boosted sentiment. Rallying equities pulled crude oil up from lows in another volatile session for the energy …

  • India drugmaker stocks exception in Asian rout

    SINGAPORE/MUMBAI, Sept 3 (Reuters) - The double-digit stock market gains of Indian pharmaceutical giants including Dr. Reddy's Laboratories (REDY.NS) and Wockhardt (WCKH.NS) stand out in stark relief to the dismal performance of other Asian emerging-market stocks this year. Continued strength in the dollar when the Federal Reserve raises interest rates will also boost their income. More than 40 percent of over-the-counter and generic prescription drugs sold in the United States come from …

  • As stocks tumble, Indian pharma, Taiwan tech lure smart money

    Asia’s tumbling stocks have triggered an exodus of funds from the region, but some investors say the sell-off has been indiscriminate and that certain stocks offer compelling buying opportunities. The ... …

  • Wall Street surges as turbulence becomes the norm
    Wall Street surges as turbulence becomes the norm

    U.S. investors have weathered over two weeks of unusually wide-swinging trade that has left the S&P 500 with its worst monthly drop in three years and a loss of 8.5 percent from an all-time high in May. U.S. labour markets were tight enough to fuel small wage gains in some professions in recent weeks, though some companies already felt a chill from an economic slowdown in China, the Fed said. The S&P 500 (.SPX) climbed 1.83 percent to 1,948.85 and the Nasdaq Composite (.IXIC) surged 2.46 …

  • Oil turns higher as Wall Street rally offsets inventory rise
    Oil turns higher as Wall Street rally offsets inventory rise

    Oil prices ended nearly 2 percent higher on Wednesday in volatile trade as rallying equities on Wall Street pulled crude up from lows after futures sank on concerns about global oversupply. "Looks like risk-on trade with a rising tide lifting all boats," John Kilduff, partner at Again Capital LLC in New York, said. Also providing lift was a rally in Canadian synthetic crude prices. …

  • Gold steady after four-day gain, awaiting signal on U.S. rates
    Gold steady after four-day gain, awaiting signal on U.S. rates

    Gold steadied on Wednesday after a four-day rally as uncertainty over the timing of a looming U.S. rate hike kept a lid on prices, while a retreat in stocks after weak U.S., Chinese and European manufacturing data lent some support. Traders are awaiting Friday's U.S. non-farm payrolls report for August, and Wednesday's ADP jobs data, for signs of strength in the U.S. jobs market. A disappointing number would further dent expectations that a U.S. rate hike is imminent. …

  • Wall Street shares up after U.S. data, technology sector leads
    Wall Street shares up after U.S. data, technology sector leads

    U.S. stocks were up more than 1 percent on Wednesday afternoon supported by U.S. data and technology stocks led a rebound from Tuesday's steep losses. The market briefly hit a session high after the Federal ... …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    21.450.000.00%
    SUZLON.BO
    230.60-8.50-3.55%
    SBIN.BO
    74.65-1.25-1.65%
    HINDALCO.BO
    86.00-1.55-1.77%
    ASHOKLEY.BO
    265.25-6.40-2.36%
    ICICIBANK.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    116.75+28.75+32.67%
    PALRED.BO
    52.00+12.25+30.82%
    HATHWAY6.BO
    38.90+6.45+19.88%
    ESTER.BO
    142.60+22.60+18.83%
    JINDRILL.BO
    62.10+9.60+18.29%
    SFPIL.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    9.70-312.35-96.99%
    BSX.BO
    39.70-9.05-18.56%
    BALFC.BO
    23.20-4.30-15.64%
    INDRAIND.BO
    16.05-2.95-15.53%
    FEINDIALTD.BO
    37.35-5.65-13.14%
    ARIHANT.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.