Total money send to India is expected to drop by about 23% in 2020, to $64 billion, compared to 5.5 per cent growth and $83 billion in 2019. According to the Income Tax Act of 1961, an Indian citizen who moves to another country for work may be classified as a non-resident Indian (NRI) if they are not personally rampant in the country for more than 18 months a financial year. According to a report published by the Ministry of Foreign Affairs, India’s NRI and POI (Persons of Indian Origin) estimated population 30,995,729 in 2018. Indians now account for 6.4 per cent of the global expat population.
What Are the Steps Taken by the Indian Government to Support NRI?
International money transfer to India is a significant gross domestic product for emerging economies such as India, and the Indian government has taken measures to promote NRI money transfers. Favourable exchange rates, combined with low transfer fees provided by payment service agencies like Ace Money Transfer, have helped India become the world’s top recipient of remittances. There is, however, quite a considerable distance to get there. Although NRIs’ contribution to India’s GDP is enormous, the government must take new initiatives to encourage more NRIs to attract investment.
How Remittance Help Out to Enhance Government Level Projects?
Online money transfers to India support several government policies in India, including skill growth, Digital India, and Make in India initiatives and income generation. They raise GDP at the state level, helping the government to fight inflation and enforce development initiatives.
Why Remittance Is Hope of Life for People Living in Remote Areas of India?
However, remittances have the most significant effect at the household level, accounting for up to 60% of recipients’ overall income. Expats send money to India online to help low-income families escape poverty, improve their health through healthy diets, invest in better education, improve accommodation and hygiene, entrepreneurial development and income generation, maximize profitability, and create assets.
What Is Impact of Remittance On the Huge Agricultural Sector of India (Farmers)?
International money transfers by NRI have an environmental effect. They allow households and communities to access renewable energy sources, critical in remote areas where electricity is scarce or non-existent. People will pursue more productive agricultural and non-farming activities, such as better irrigated agriculture, with remittances.
It’s past time for us to acknowledge and involve remitters as key transformational leaders in our efforts to achieve the SDGs. And provide better money transfer service like Ace Money Transfer for easy, secure and digital money transfer to receive international remittance.