India became World’s Largest Recipient of Remittances
India has recently become the largest recipient of remittances across the world. According to the World Bank, it received USD 87 billion in 2021.
India is followed by China and Mexico, each with USD 53 billion in remittances.
According to the central bank survey, the share of remittances from Gulf Cooperation Council (GCC)inward remittances in India has declined from over 50% in 2016-17 to 30 per cent in 2020-21.
Migration from India to the GCC region, strict labour laws, high work permit renewal fees, slowing oil prices and taxes have led to a decline in remittances from Gulf countries to India.
The share of Kerala, Tamil Nadu and Karnataka has come down to half in 2020-2021. Previously, these states dominated the GCC region and were major contributors to remittances. These states account for 25% of the total remittances since 2016-17.
Maharashtra has become the largest recipient state, surpassing Kerala.
Please Rate this article, so that we can improve the quality for you -