Nature of remittance flows into India from the Indian diaspora
Overseas Indian Affairs Minister Mr Vayalar Ravi has informed the Lok Sabha that the country received remittances to the tune of approximately US$ 40.8 billion (around Rs 204,050 crore) during the period April to December 2009.
Noteworthy takeaways from the survey have been:
- A major portion of the remittances received (61%) in India, are utilised for family maintenance.
- On an average, about 20% of the funds received are deposited in the bank accounts. A relatively major portion of remittances are put in bank deposits in centres such as Ahmedabad, Chandigarh, Delhi, Jaipur and Kochi.
- About 4% of the funds received are invested in land/property/ equity shares, while 3% funds were invested in equity shares.
- Geographically speaking, the region of North America continues to be the most important source of contributing remittances into India (which is about 38% of the total remittances), while Asian region (Gulf and East Asia) contributes about 32% of the total remittances.
- While Kochi and Mumbai received more than 50% of their remittances from Gulf region; Ahmedabad, Bengaluru, Chandigarh, Delhi, Hyderabad and Kolkata received more than 60% of their inward remittances from the regions of North America and Europe, together
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