Remittances to India by NRIs grew 26% to $112.5 billion in FY23

Remittances to the country by non-resident Indians rose 26% on year to about $112.5 billion in FY23, underscoring the surge in demand for Indian professionals globally after the pandemic.

Remittances to India were $89.1 billion in FY22. India continues to be the top recipient of remittances globally for the last several years.

The latest data from the finance ministry indicates that the trend of sustained and fast-paced increase in “personal transfers” to India, which was interrupted during FY21 due to the pandemic, has not only resumed but also been buttressed.

The surge in remittances is at a time when FDI flows across national borders seem to have slowed.

Despite launching 14 production-linked incentive schemes, India attracted $70.97 billion FDI in FY23, down from 84.8 billion in FY22.

The share of the 10 major countries in inward remittances to India, based on a survey conducted by the Reserve Bank of India for 2020-21, showed that the USA was the top source with a share of 23.4% in total remittances. It was followed by UAE with 18%, UK (6.8%), Singapore (5.7%) and Saudi Arabia (5.1%).

Private remittances are a major boost to India’s current account, even as the country’s merchandise trade often results in a deficit.