Gulf remittance to India fell by 2.2% - CRISIL | business | Hindustan Times
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Gulf remittance to India fell by 2.2% - CRISIL

Remittances from the Gulf Cooperation Council (GCC) region to India declined for the first time in six years, falling 2.2%, according to a CRISIL report. But despite slowdown, remittances are more than India’s trade deficit with GCC. The trade deficit with GCC has narrowed by whooping 77% in last three years due to falling oil prices.

business Updated: May 24, 2016 18:15 IST
Remittances from abroad in India contribute to 37% of GDP.
Remittances from abroad in India contribute to 37% of GDP. (REUTERS)

Remittances from the Gulf Cooperation Council (GCC) region to India declined for the first time in six years, falling by 2.2%, according to a report from CRISIL. But despite decline, the remittances are more than India’s trade deficit with GCC. The trade deficit with GCC has narrowed by whopping 77% in last three years due to falling oil prices.

Though India’s dependence on remittances is much lower than some of its Asian peers who also receive remittances from GCC countries

More than half of India’s remittance income comes from the GCC. All GCC countries have huge dependence on oil and if oil prices remain weak for an extended period, economic activity there will come down sharply as the fiscal stress mounts. This can certainly impact the GCC remittances to India.