Little Known Facts about NRI Remittances

Did you know that India almost always tops the list of countries receiving remittances every year? India gets the remittances mostly from NRIs who send money back home to support their families. Because of these remittances Indian economy stood stable even at the time of global recession. Now let us check some of the other lesser known facts about these remittances.

Fact#1 - India tops the list of Remittance Accepting Countries

Though India has been at the top repeatedly, this has not always been the case. In 1990, only $2 billion was sent to India. The amount slowly but surely rose in the following years and in 1996 it was over $12 billion. By 2003 the amount nearly doubled to $22 billion.

In 2005, India was at the top of the list with about $24 billion followed by China and Mexico. In 2008, it displaced China and Mexico as the most sought after country to send remittances. The amount sent to India during that year was $45 billion.

Fact#2 - Remittances help Indian Economy Grow

The remittances sent to India have affected India in a very positive way. The significance of the ability to send remittances has risen considerably in the last twenty years. The remittances sent has affected the GDP as many people depend on it for their every day lives. When it started around 1990; the remittances were much smaller and made up less than one percent of the GDP. In 1995, the amount has risen to over three percent and has been consistent since then.

Fact#3 - Investments are pouring in for Newer Remittance Methods

The methods to send remittances have also developed considerably. Along with the traditional methods like a bank or money transfer services, the sender can now select from the modern financial instruments such as ACH transfers, direct debit and remittance cards.

With the sender paying more attention to the details regarding the remittances to the area, you can decide upon the best suited method to send money to India easily.

Fact#4 - Remittances to India is Always Growing

Though there has been a drop in the number of people who send money to India, it has still not fallen as much as was predicted by some experts. There are two reasons for it. The first is that many Indian migrants are anxious about losing their savings in the foreign countries. So they transfer it to India which has a slightly more stable financial market.

The second reason is that the relatives receiving remittances become used to living off it. They still require the help of the remittances for their everyday expenses and hence the NRIs help them as much as they can.

Thus the trend to NRI Remittances is going to continue.