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India expects rise in remittance inflows: Economic Survey 2023-24
India's Economic Survey projects 3.7 percent growth in remittances for 2024, reaching USD 124 billion.
Nirmala Sitharaman Presents Economic Survey. / Image - Representative Image
Remittance inflows to India are anticipated to increase steadily over the next two years, according to the Economic Survey 2023-24, which was presented by Finance Minister Nirmala Sitharaman in the parliament on July 22.
The Economic Survey is an annual report on the Indian economy for the past financial year, prepared by the Economics Division of the Department of Economic Affairs under the guidance of the Chief Economic Advisor (CEA).
According to the survey, remittances to India are expected to grow by 3.7 percent in 2024, reaching USD 124 billion. This trend is forecasted to continue into 2025, with a 4 percent increase, bringing the total remittance inflow to USD 129 billion.
“The outlook for remittance in India for 2024 is strong, with the expectation that remittance growth will moderate to 3.7 per cent, taking remittance levels to USD 124 billion in 2024,” the survey states.
The survey attributes this stability to the diversification of India’s migrant pool, which includes highly skilled migrants in high-income Organisation for Economic Co-operation and Development(OECD) markets and less-skilled migrants in Global Capability Centers(GCC) markets. This mix is likely to stabilize remittance flows in the face of external shocks.
Additionally, India's efforts to link its Unified Payments Interface (UPI) with countries such as the United Arab Emirates and Singapore are expected to lower costs and speed up remittance transfers.
Previously, In April-December 2022, India's growth rate was expected by 7 percent. India's merchandise exports totaled $332.8 billion, with increased market diversification towards Brazil, South Africa, and Saudi Arabia. The implementation of CEPA with the UAE and ECTA with Australia aimed to enhance market access.
India, the world's largest remittance recipient with $100 billion in 2022, saw its forex reserves reach $563 billion by December, covering 9.3 months of imports. The country ranked sixth globally in foreign exchange reserves and maintained low levels of total and short-term debt relative to Gross National Income.
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