New Delhi: Data released by the Reserve Bank of India (RBI) revealed that the share of remittances from the Gulf Cooperation Council (GCC) countries to India has declined in 2021. A study published by RBI named ‘Headwinds of Covid-19 and India’s Inward Remittances’ revealed this.
The study said that the slower pace of migration and the presence of the Indian diaspora in informal sectors that were hit the most during the pandemic period were the main reason for this.
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As per the study, the share of remittances from the GCC region to India have declined to 30% in 2020-21. It was at 50% in 2016-17. The share of states like Kerala, Tamil Nadu, and Karnataka, has almost halved in 2020-21. They accounted for only 25% of total remittances since 2016-17. Maharashtra has emerged as the top recipient state surpassing Kerala.
Meanwhile, India, remained the top recipient country, accounting for 12% of total global remittances. Remittances are the second major source of external financing for low and middle-income countries after foreign direct investment.
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