India is the highest recipient of remittances from abroad

The Minister of Overseas Indian Affairs, Shri Vayalar Ravi told the Rajya Sabha today that India is the highest recipient of remittances from abroad. About 40% of this is the estimated remittances received from overseas Indian workers including from semi-skilled and unskilled workers in the gulf.

The remittances from Overseas Indians for the year 2007 were estimated at US $27 billion. These are in the nature of private funds transferred by individuals for various purposes including to meet consumption expenditure of their families back home. The data in this respect is maintained by the Reserve Bank of India.
With the Foreign Exchange reserves rapidly dwindling due to the rapid increase in demand for dollars (owing to the FIIs selling and taking their money out of the country as well as the high cost of fuel), this could be a blessing in disguise and a route that should be encouraged by the government so as to balance the outflow of foreign exchange.