Foreigners send money to India are critical to the country’s economic growth and provision of essential services to its people. In 2018, India received USD 79 billion in remittances from Indian ex-pats worldwide, maintaining its status as the world’s top remittance-receiving country.
Federal Bank continues to grow its remittance market share. In September 2020, it had a market share of 17.5%. During the financial year April 2020 to March 2021, it processed remittances worth more than Rs1 trillion. Not only will remittance as a destination country increase due to the bank’s investment in technology and relationship management, but so will Federal Bank’s share of those remittances.
With about £3 billion sent from the UK to India in 2018, India is the world’s leading remittance recipient. Understanding the tax consequences, the maximum cap for a money transfer to India from the UK, and how it works will help you transfer money with confidence.
Is India Going To De-Rank From The World’s Top Remittance-Receiving Country In 2021?
According to the World Bank, the current coronavirus disease outbreak and the global economic crisis will cause online money transfer to India to drop by 9% this year to USD 76 billion. Remittances to low- and middle-income countries (LMICs) are expected to decrease by 7% to $508 billion in 2020, then by another 7.5 per cent to $470 billion in 2021.
According to the latest projections published in the World Bank’s Migration and Development Brief, as the COVID-19 pandemic and economic crisis spread, the amount of money migrant workers send home will decline 14 per cent by 2021 compared to pre-COVID-19 levels in 2019.
Remittances to low and middle-income countries (LMICs) are expected to drop by 7% in 2020, 508 billion dollars, and then by another 7.5 per cent in 2021, to $470 billion.
The Bottom Line:
Slow economic growth and employment levels in migrant-hosting countries, low oil prices, and depreciation of remittance-source countries’ currencies against the US dollar are the main drivers of declines in sending money to India online, according to the federal bank.