India received close to $90 billion in remittance flows from around the world in 2022. The total remittance flows during the 2021-22 fiscal year were the highest received by India in a single year, data from India’s Ministry of Finance showed. India’s fiscal year starts on April 1 and ends on March 31.
The US, the world’s largest economy, was the biggest source of remittances to India, with a 23.4 per cent share in total remittance flows, followed by the UAE at 18 per cent. The UK was in third place with a 6.8 per cent share and Singapore was fourth with a 5.7 per cent share.
Singapore also ranked among the top remittance-sending countries to India. The Gulf countries, including the UAE, play a significant role in supporting India’s economy, as a large number of Indians residing there send money back home.
Saudi Arabia, the Arab world’s largest economy, was the sixth biggest source of remittances to India with a total share of 5.1 per cent in total remittances, while Kuwait, Oman and Qatar had a share of 2.4 per cent, 1.6 per cent and 1.5 per cent, respectively.
Recently, India and the UAE signed agreements to promote the use of local currencies and enhance cross-border transactions, further strengthening economic ties between the two nations.
The agreements, which promote the use of the Indian rupee and the dirham bilaterally, are expected to boost investments and remittances between the two countries, the Reserve Bank of India said on its website.
The two countries also agreed to co-operate on linking their fast payment systems – India’s Unified Payments Interface with the UAE’s Instant Payment Platform – to ease cross-border money transfers.
Last year, India and the UAE also signed a comprehensive economic partnership agreement, boosting economic ties between the two countries.