Categories: Economy

India Received Highest ever Foreign Inward Remittances in a single year of $89,127 million in FY 2021-22

During 2021-22, India received foreign inward remittances of USD 89,127 million which was the highest ever inward remittances received in a single year. This was stated by Union Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha.

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The data on inward remittances for the past 5 years are as follows:

Year

Inward Remittances

(US $ million)

2017-18

69,129

2018-19

76,396

2019-20

83,195

2020-21

80,185

2021-22

89,127

The minister further stated that the value of the Indian Rupee is market-determined and the RBI closely monitors the foreign exchange markets. He added that intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any predetermined target level or band.

Share of different countries in inward remittances, 2020-21:

Source Country

Share in Total Remittances (Percent)

United States

23.4

United Arab Emirates

18.0

United Kingdom

6.8

Singapore

5.7

Saudi Arabia

5.1

What is remittance:

  • The World Bank defines remittance as the sum of worker’s remittances, compensation of employees, and migrants’ transfers as recorded in the IMF Balance of Payments.
  • Workers remittances are current transfers by migrant who are considered residents in the source.
  • Remittances are a vital source of household income for low and middle income countries.

 

Piyush Shukla

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