NRI remittances surge to $7.18 bn in 2013

This is 10% of the total global remittance of $71 bn in 2013, estimated by the World Bank

Global remittance flows to India have witnessed a sharp surge to $7.18 billion in 2013, setting a new record, according to global remittance and foreign exchange brand, UAE Exchange.  

States like Kerala, Maharashtra and Tamil Nadu have contributed nearly 60 per cent  to the total inflows during the year.

This is 10 per cent of the total global remittance of $71 billion in 2013, estimated by the World Bank.  

Remittances by non-resident Indians grew 6.44 per cent between January and December 2013, as compared with last year, which is the highest since 2008.

Remittances to Kerala surged to $2.3 billion during the year, up 10 per cent  from last year.

Kerala remains the top recipient, contributing 33 per cent to the total remittances into the country, the World Bank data stated.

Abu Dhabi-headquartered UAE Exchange manages over 10 per cent  of the total remittance market in India and six per cent of the total global remittance flows.

Rising income levels coupled with a sharp fall in the rupee during the year helped in boosting remittance flows into the country.

Several steps were taken by the Reserve Bank of India (RBI) to curb illegal foreign inward remittances apart from measures to attract NRI deposit money into the country.  

Promoth Manghat, vice president – Global Operations, UAE Exchange, said the company had seen record performance in remittance flows into India during 2013, with states like Maharashtra, Karnataka and Rajasthan growing faster than others.

Kerala receives huge remittances from the West Asia.

"We remain positive about the outlook for remittances as more job opportunities are getting created abroad, especially in the light of several events like Expo 2020 in Dubai, FIFA World Cup in Qatar among others," said Manghat. Kerala remains a key market for us and we will continue to expand our presence here, he added.  

As compared with other cities in southern India, incrementally it is witnessing higher growth from regions like Jaipur, Kolkata and Ahmedabad.  

In fact, the average quantum of money transferred to states like Kerala has increased from Rs 43,000-44,000 to Rs 46,000-47,000 per transaction, which is also perhaps a sign of rising income levels in the region.

A recent RBI survey stated the frequency of remittances in the region had come down, which also suggests more people were remitting money for investment purposes, such as investing in bank fixed deposits and real estate, as against family maintenance purposes.

The survey also suggested around 46 per cent of the total remittance inflows in Kerala was dollar-denominated, while 15 per cent was received in pound, sterling and euro.

Workers' remittances have remained an important source of external finance for the state since the last three decades. Remittances essentially represent household income from foreign economies arising mainly from the temporary or permanent movement of workers to source economies, the UAE Exchange said.

Kerala contributed the largest share to the total remittance flows for UAE Exchange, with 33 per cent to the total volumes. Other top markets include Maharashtra (14.3 per cent), Tamil Nadu (12 per cent), Andhra Pradesh (8 per cent) and Karnataka and  Punjab (6 per cent each).

The UAE Exchange has over 700 outlets in 31 countries. It plans to raise it to 1,000 in the next three years.