UP, Bihar, Bengal new hot destinations for foreign remittances
Punjab and Kerala are no more the major recipients of foreign remittances in India. With the growth in the economy, other pockets like Uttar Pradesh, Bihar and West Bengal are also gradually emerging as major markets, reflecting a change in employment pattern in these states, industry sources told Hindustan Times. Mahua Venkatesh reports.business Updated: Mar 28, 2011 01:18 IST
Punjab and Kerala are no more the major recipients of foreign remittances in India. With the growth in the economy, other pockets like Uttar Pradesh, Bihar and West Bengal are also gradually emerging as major markets, reflecting a change in employment pattern in these states, industry sources told Hindustan Times.
According to banking sources about 10% of India’s foreign exchange remittances are accounted for by Bihar, Uttar Pradesh, West Bengal and North Eastern States.
India continues to be one of the largest recipients of foreign remittances. China, Mexico and Philippines are also on the top of the list of countries with remittance incomes.
Remittances from North America comprise about 38% of the total remittance inflow into the country. “A few years ago it was about 44%,” an industry expert tracking the sector said. However, blocks like Singapore, Australia, Italy, France and Germany have emerged sizeable sources of remittance.
A senior official at the ministry of overseas affairs said that despite the global financial crisis in 2008 and 2009, followed by the political turmoil in the Middle East in 2010, overall remittances from the overseas Indians and the migrant workers employed abroad have only risen in real terms.
In 2008-09, total remittance receipts stood at $ 46,903 million, while in 2009-10 — from April to December — it stood at $ 40,810 million, according to official data. Though the official data for 2010-11 is yet to be tabulated, source said it couldis likely to be significantly higher. Besides, remittances have come in from non-resident Indians (NRIs) as well.
“We have seen a huge surge in remittance inflow and the Middle East crisis has had no major impact on the market,” Anil Kapur, managing director, South and South East Asia, Western Union, said.
“Remittance inflow into India will keep rising in the coming years,” R Seetharaman, CEO, Doha Bank said. Doha Bank, which has applied to the RBI for a banking licence, is keen to enter the Indian market.