Context: Remittances to the country by non-resident Indians rose 26 percent on year to about $112.5 billion in FY23, underscoring the surge in demand for Indian professionals globally after the pandemic.
The share of the 10 major countries in inward remittances to India, based on a survey conducted by the Reserve Bank of India for 2020-21, showed that the US was the top source with a share of 23.4 percent in total remittances.
It Was followed by UAE with 18 per cent, UK (6.8 per cent), Singapore (5.7 per cent) and Saudi Arabia (5.1 per cent).
Remittance
About:It refers to money that is sent or transferred to another party, usually overseas.
It is derived from the word 'remit' which means 'to send back'.
It can be sent via a wire transfer, electronic payment system, mail, draft, or cheque.
It can be used for any type of payment including invoices for business purposes or other obligations like personal transfers made to family and friends.
Two main components: Personal Transfers in cash or in kind between resident and non-resident households and Compensation of Employees, which refers to the income of workers who work in another country for a limited period of time.
Significance: Remittances help in stimulating economic development in recipient countries, but this can also make such countries over-reliant on them.