Foreign inward remittance : India Receives Highest Ever Foreign Inward Remittances in a Single Year of $89,127 Million in FY 2021-22
India has received a record-breaking amount of foreign inward remittances in the financial year 2021-22. According to data from the Reserve Bank of India (RBI), the country has received a total of $89,127 million in foreign remittances between April 2021 and February 2022, which is the highest ever received in a single year. This is a significant increase from the previous year’s total of $83,309 million.
The main contributors to this increase in foreign remittances were the United Arab Emirates (UAE), the United States (US), and Saudi Arabia. The UAE was the top contributor, sending $20,137 million to India, followed by the US with $15,066 million and Saudi Arabia with $11,470 million.
This significant increase in foreign remittances is seen as a positive development for the Indian economy. It has helped to boost the country’s foreign exchange reserves, which are important for maintaining a stable and healthy economy. The remittances have also provided much-needed support for households that rely on them for their daily expenses.
The increase in foreign remittances can be attributed to several factors, including the rise in oil prices, which has led to an increase in demand for workers from India in countries such as Saudi Arabia and the UAE. Additionally, the COVID-19 pandemic has forced many Indians living abroad to send more money home to support their families during these difficult times.
Overall, this increase in foreign inward remittances is a positive development for the Indian economy and its citizens. It highlights the importance of the contributions of Indians living abroad to the country’s economy and the need to continue to support them.
Why this News is Important:
The news of India receiving the highest ever foreign inward remittances in a single year of $89,127 million in FY 2021-22 is significant for several reasons.
Boosts Indian Economy
Firstly, it is a positive development for the Indian economy. The increase in foreign remittances has helped to boost the country’s foreign exchange reserves, which are important for maintaining a stable and healthy economy.
Supports Indian Households
Secondly, the remittances have provided much-needed support for households that rely on them for their daily expenses. This is especially important during the COVID-19 pandemic, which has caused economic hardship for many families.
Highlights Importance of Indians Abroad
Lastly, this news highlights the importance of the contributions of Indians living abroad to the country’s economy. It is a reminder that the Indian diaspora plays an important role in supporting their families and their home country.
Historical Context:
India has a long history of receiving foreign remittances. It is estimated that there are over 30 million Indians living abroad, with a significant number in countries such as the US, UAE, and Saudi Arabia.
Foreign remittances have become an increasingly important source of income for the country. In recent years, India has consistently been the world’s top recipient of remittances, with a total of $83,309 million received in the financial year 2020-21.
The increase in foreign remittances in FY 2021-22 can be attributed to several factors, including the rise in oil prices and the COVID-19 pandemic, as mentioned earlier.
Key Takeaways from “India Receives Highest Ever Foreign Inward Remittances in a Single Year of $89,127 Million in FY 2021-22”:
Here are the five key takeaways that students should know for their government exam preparation:
| Sr. No. | Key Takeaway |
|---|---|
| 1. | India has received the highest ever foreign inward remittances of $89,127 million in a single year in FY 2021-22. |
| 2. | The main contributors to this increase in foreign remittances were the UAE, US, and Saudi Arabia. |
| 3. | The increase in foreign remittances has helped to boost the country’s foreign exchange reserves, which are important for maintaining a stable and healthy economy. |
| 4. | The remittances have provided much-needed support for households that rely on them for their daily expenses, especially during the COVID-19 pandemic. |
| 5. | This news highlights the importance of the contributions of Indians living abroad to the country’s economy and the need to continue to support them. |
Overall, this news is important for students preparing for government exams as it highlights the positive impact of foreign inward remittances on the Indian economy and the need to support the Indian diaspora living abroad. It also highlights the need for policies that facilitate the safe and efficient transfer of remittances to India.
Important FAQs for Students from this News
What are foreign inward remittances?
- Foreign inward remittances refer to money sent by individuals living abroad to their families or friends in India.
What are the main sources of foreign inward remittances to India?
- The main sources of foreign inward remittances to India are countries with large Indian diaspora populations, such as the UAE, US, and Saudi Arabia.
How do foreign inward remittances impact the Indian economy?
- Foreign inward remittances can help to boost India’s foreign exchange reserves, which are important for maintaining a stable economy. They also provide much-needed support for households that rely on them for their daily expenses.
How has the COVID-19 pandemic impacted foreign inward remittances to India?
- The COVID-19 pandemic has led to a decrease in foreign inward remittances to India, as many Indian migrants lost their jobs and were unable to send money back home.
What policies are in place to facilitate the safe and efficient transfer of foreign inward remittances to India?
- The Reserve Bank of India has implemented various policies to facilitate the safe and efficient transfer of foreign inward remittances to India, such as the Liberalised Remittance Scheme.
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