'Indian beneficiaries get Rs 2.3 lakh/year in avg remittances'

Indians beneficiaries receive an average of Rs 2.30 lakh per year in remittances from their family members working abroad in a year and half of them said that the income has improved savings, a report said.
The study done by a research firm for payment services company, Western Union is based on interviews of over 2,600 recipients across seven states and across economic sections.
"Average remittance in 12 months in India is approximately Rs 2.30 lakh," it said, adding that the average amount remitted to India per transaction is Rs 40,000.
India has emerged as the largest beneficiary of remittances, with over USD 69 billion in inflows last year, which are estimated to grow to USD 71 billion, according to the World Bank.

The survey said there are many variations on a geographical basis on patterns like the average receipt in states like Gujarat, Punjab and Uttar Pradesh go up above Rs 2.50 lakh per annum, while single transactions also go up to Rs 1 lakh in those states.
Even though the primary needs of remittance is for meeting daily expenses and consumption (72 per cent), respondents said the inflows have also helped increase savings and investments.
"The increased savings is mostly in terms of money deposited in bank accounts (80 per cent), followed by buying insurance (50 per cent)," it said.
The report said that 62 per cent of the people interviewed said they use the inflows for medical expenses, while 58 per cent said that funds are used for education.