In 2020, Indian expatriates were sending money home in record amounts. In that year, migrants sent about 80 billion dollars to India. Even amid the pandemic, the flow of money from the migrants continued. Most of the money that was coming to India from abroad was from those who came by selling their properties located in Gulf countries. During that time the epidemic was in full swing. Oil prices were falling. People were losing their jobs. In such a situation, the people who settled outside were thinking it appropriate to sell their properties and return to the country. These people were not completely sure whether these people would ever be able to go back or not. In such a situation, it was expected that the amount sent from abroad would decrease in the future. However, this guess turned out to be wrong.
In a World Bank report, citing RBI data, it has been said that the amount sent by migrants to India is expected to reach a record $ 100 billion this year. More than one crore of 80 lakh expatriates spread across the world can send a record amount to their homes in the year 2022. So, the question is what is causing this boom and where is this money coming from? Let's start with the remittances from Gulf countries. It accounts for 30% of the total remittances to India and we are seeing further growth here. Admittedly, many expatriates lost their jobs in Middle East countries in 2020, but the economies of these countries opened up very quickly. Oil prices soon skyrocketed. The demand for labor also started increasing. Inflation in the Gulf countries remained modest compared to most parts of the world. People had more money to spend and they sent some part of it back home i.e. India.
Depreciation in the rupee against the dollar leads to a rise in inflows
An important fact related to the increase in remittances from expatriates to the country is that the Indian currency has declined against the dollar. Most Middle Eastern currencies are pegged to the dollar, so now that expatriates send money home after the rupee's fall, here in India they get more rupees than before. For example, if people were sending $1,000 back home two years ago, they would have received 70,000 rupees. Now if the same person is sending 1,000 thousand dollars, then he is getting 81,000 to 82,000 rupees. So whenever the rupee depreciates, Indian expatriates usually struggle to save every penny and send it home. Many people even borrow money at low-interest rates to take advantage of these opportunities. This is the reason why there is an increase in the amount coming from abroad.
# Migrants settled in America are sending maximum money to the country
There is another reason why there is an increase in the money coming from abroad. Now the pattern of those who go abroad and earn has changed. Especially for skilled Indians. Now people are moving to places like America and Canada in large numbers. 57% of the 5 million Indians in the US have been living there for more than 10 years. This means that they too are now reaching their 'peak' earning potential. They are high earners in the service sector. In 2021 and 2022 (till a few months ago) people working in the field of tech abroad saw an increase in their income. People saved and sent some of that extra cash back home. Since expatriates in developed countries like the US and Canada earn much more than expatriates in the Gulf countries, their contribution to remittances back home is also high. Since 2017, remittances from the US, UK, and Singapore to the country have increased from 26% to 36% of the total remittances sent to India by expatriates. Now the maximum amount of money is coming to India from America and it has overtaken UAE.
Also Read: GIS 2023: 15 thousand crore investment proposal received from Sweden, will also invest in Film City
Uttarakhand Tunnel Collapse: Rescue operation gained momentum, workers can come out by tomorrow morning; ambulance is ready
41 lives are still at stake in the Silkyara Tunnel accident of Uttarkashi. For the last 10 days, 41 laborers have been sitting inside the tunnel hoping to come out. Rescue operations have also going
Uttarakhand Weather Update: Effect of the jet stream in India, severe heat, the possibility of melting icebergs and avalanches
Uttarakhand Weather Update: The increasing indifference to the weather in Uttarakhand is surprising even the meteorologists. After the continuous reduction in rainfall in winter, now the rapidly
Virat Kohli Birthday: From scoring a half-century of centuries in ODIs to becoming a world champion, know Kohli's records
Former Indian team captain and star batsman Virat Kohli is celebrating his 36th birthday today. Kohli has achieved many achievements in his career so far and is counted among the world's great
Waqf Bill: Indian Muslim League angry with Rahul-Priyanka, called this move of Congress MP a 'black spot'
The Indian Union Muslim League has expressed dissatisfaction over the absence of Wayanad MP and Congress leader Priyanka Gandhi during the discussion on the Waqf Amendment Bill in the Lok Sabha.
LokSabha Polls: TDP leading with 47 seats in Andhra, and BJD leading with 12 seats in Odisha, know the condition of BJP+ in these states
The results of the Lok Sabha elections in 2024 are going to come today. Along with this, the results of the Odisha and Andhra Pradesh assembly elections will also come. Good news can come for BJP and
Smriti Mandhana Birthday: This player, known as 'National Crush', earns crores, know how much is his net worth.
Smriti Mandhana Net Worth. Indian women's team vice-captain Smriti Mandhana is celebrating her 28th birthday today. Fans are congratulating Smriti, known as National Crush, on her birthday in
Sri Lanka: Crisis on democracy due to lack of funds, issue of postponement of local elections in Sri Lanka heats up
The issue of postponing the local elections in Sri Lanka continues to be a hot topic. Opposition parties are trying to put the government in the dock regarding this. Voting for the local elections was
PFI now gets a shock from the Supreme Court, a petition challenging the ban rejected; Got this advice
SC on PFI Popular Front of India (PFI), an organization banned under UAPA for anti-national activities, has received a setback from the Supreme Court today. The Supreme Court has refused to hear PFI's
EY Employee Death '5 days a week and 8 hours of work', Shashi Tharoor angry with Anna Perayil's death, is going to take a big step
He has expressed grief over the death of a 26-year-old employee of EY. At the same time, he has also reacted to the working system within the public and private sectors of the country. It is being
Dujana Encounter: Dujana was at the top of the list, a day before the CM tour, the dreadful end, now this big mafia is on target
The encounter with Anil Dujana proved the Yogi government's strict policy against mafias once again. In the list of 65 mafias released by the government 20 days ago, Anil Dujana was on top in the
