Remittance cost for workers outside India may drop to 3% by 2027: Official

G20 leaders have attached a lot of importance to the high remittance cost for workers outside India, and efforts are underway to bring the rate down to an average of 3% by 2027, a top official said

G20 leaders have attached a lot of importance to the high remittance cost for workers outside India, and efforts are underway to bring the rate down to an average of 3 per cent by 2027, a top official said on Sunday.

At present, the remittance cost, on an average, stands at around 6 per cent of each transaction, he said.

"Workers and labourers employed outside India have to bear a high remittance cost, and G20 leaders have attached a lot of significance to reduction of this rate.

"The aim is to bring it down to an average of 3 per cent by 2027," said Chanchal Sarkar, Economic Advisor, Ministry of Finance, Department of Economic Affairs.

Sarkar was speaking at a briefing ahead of the first Global Partnership for Financial Inclusion meeting of the G20, scheduled to be held in Kolkata from January 9-11.

He said remittance cost will be one of the key topics of discussion at the three-day event, along with digital financial inclusion principles and finance availability for SMEs.

India assumed the presidency of the influential bloc G20 at its annual summit in Bali in November.

The country received USD 87 billion in remittances in 2021, the top remittance recipient, and way ahead of countries like China and Mexico, according to a recent World Health Organisation report.

India was the top remittance recipient among low and middle-income countries, as per 2021 estimates, surpassing China's and Mexico's USD 53 billion, the Philippines (USD 36 billion) and Egypt (USD 33 billion).