Moneycontrol
Get App
Last Updated : Apr 29, 2020 04:57 PM IST | Source: Moneycontrol.com

BIG STORY | What the fall in NRI remittances means for India

In this episode of Big Story, Moneycontrol's Sakshi Batra tells us why NRI remittances are falling and its implications for India


COVID-19 has hit India’s steady flow of remittances. With many major economies on the verge of a recession this year, Indians living in those countries are likely to send lesser money back home.

NRI remittances have also been India’s bulwark in financing its current account deficit. Thankfully, due to the record low oil prices, India's import bill is likely to be within the comfort zone, thus putting less pressure on the current account deficit.

"In India, remittances are projected to fall by about 23 percent in 2020, to $64 billion – a striking contrast with the growth of 5.5 percent and receipts of $83 billion seen in 2019,” the World Bank said in a report on the impact of COVID-19 on migration and remittances released on April 22.

Close

The UAE, the US, Saudi Arabia, Qatar, Kuwait, Oman, United  Kingdom and Malaysia account for about 80 percent of total remittances received by India. The UAE, with more than 3.3 million Indian expatriates, has traditionally been the largest source of remittances to India.

In this episode of Big Story, Moneycontrol's Sakshi Batra shares insights into what the falling NRI remittances mean for India?

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on Apr 29, 2020 04:57 pm
Sections
Follow us on