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RBI survey on Remittances
Why is it in the news ?
- As per the RBI survey for 2017, the Southern states of Kerala, Karnataka, Tamil Nadu and Andhra accounted for a share of 46% or $31.74 billion (Rs 2,30,900 crore) of total remittances of $69 billion.
- Kerala, which received $13.11 billion (over Rs 95,000 crore), topping the list during the year 2017.
More in the news
- Kerala, Maharashtra, Karnataka and Tamil Nadu together received 58.7 per cent of the total inward remittances.
- India continues to be the top recipient country with $69 billion of remittances in 2017 sent by a large pool of skilled, semi-skilled and unskilled Indian migrants across the globe.
- Top source Countries:
- United Arab Emirates, the United States, Saudi Arabia, Qatar, Kuwait, Oman, the United Kingdom and Malaysia.
- These 8 countries accounted for 82 per cent of the total remittances received by India.
- Use of Remittances:
- More than half of the remittances received by Indian residents were used for family maintenance (59.2 per cent).
- Deposits in banks (20 per cent).
- Investments in landed property, and shares (8.3 per cent).
Remittances and India
- Remittances essentially represent household income from foreign economies arising mainly from the temporary or permanent movement of workers to source economies.
- Remittances may have a significant impact on poverty reduction and can finance economic growth in receiving economies.
- Remittances are mainly derived from two items in the balance of payments framework:
1. Income earned by workers in economies where they are not resident (or from non-resident employers) and
2. Transfers from residents of one economy to residents of another.
- India is the largest remittances receiving country in the world ($ 69 billion in 2017 ) followed by China ($ 64 billion) and the Philippines ($ 33 billion).
- This remittances is the second largest item in the country’s invisible account.
Source
Indian Express.