BIG STORY | What the fall in NRI remittances means 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.

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.