International Relations GS 2 In the news 6 times

Remittances

Economic Significance for India

Remittances from overseas workers are India's single largest source of foreign exchange, consistently exceeding Foreign Direct Investment (FDI) inflows.

Key details

India is the world's largest recipient of remittances; received approximately $125 billion in FY2023-24 (World Bank data)
Gulf Cooperation Council (GCC) accounts for approximately 30-35% of total remittances to India
GCC states: Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain (the 6 members; formed May 25, 1981, Treaty of Maastricht, Riyadh)
Migrant-sending states: Kerala sends the highest share of Gulf migrants per capita; Uttar Pradesh and Bihar send the largest absolute numbers
Remittance channels: Banking channels, Money Transfer Operators (MTOs); regulated under Foreign Exchange Management Act (FEMA), 1999
Macro impact: Remittances support India's current account, reduce the Current Account Deficit (CAD), and finance household consumption in rural areas
Poverty impact: UNDP modelling suggests disruption to Gulf remittances could push 2.5 million Indians below the poverty line

In the news

● Tracked since March 02, 2026 · last seen April 20, 2026 · updates as the daily brief publishes

20 Apr '26

West Asia Conflict Fallout: Government Reviews Rural Schemes, Remittances, and Supply Chain Risks

Polity & Governance

01 Apr '26

Kerala Faces 20% Drop in Remittances as West Asia War Disrupts Gulf Economies

Economics

30 Mar '26

India's Invisible Receipts Surge 56% to $464 Billion in April–December FY26

Economics

05 Mar '26