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UAE Exchange, the global remittance and foreign exchange brand, announced that global remittance flows to India have witnessed a sharp surge to $7.18 billion in 2013, setting a new record for the company, with states like Kerala, Maharashtra and Tamil Nadu contributing nearly 60% of total inflows during the year.
Remittances by non-resident Indians grew 6.44% between January and December 2013, as compared to last year, the highest quantum since 2008.
Abu Dhabi-based UAE Exchange manages over 10% of the total remittance market in India and 6% of total remittance flows, globally.
Remittances to Maharashtra surged to over $1 billion during the year, up 12% from last year. Maharashtra contributed 14.26% of total remittances into the country.
Rising income levels, coupled with sharp fall in the rupee during the year helped in boosting this source of foreign inflows into the country. Several steps were taken by the Reserve Bank of India to curb illegal foreign inward remittances, apart from measures to attract NRI deposit money into the country, said the release.
"We have seen record performance in remittance flows into India during 2013, with states like Maharashtra, Karnataka and Rajasthan growing faster than others. We remain positive about the outlook for remittances as more job opportunities are already getting created abroad, especially in light of several prestigious events like Expo 2020 in Dubai, FIFA World Cup in Qatar etc. Maharashtra remains an important market for us and we will continue to expand our presence here," said Promoth Manghat, Vice President - Global Operations, UAE Exchange.
The average transaction size continues to be steady with $1,734 in 2013 as against $1,829 last year, suggesting that majority of the migrant workers and expats send money back home for family maintenance purposes.
A recent RBI Survey suggested a majority of the transactions in places, like Mumbai, were either through electronic wire transfers or direct to bank accounts. Nearly 45% of remittances in the state capital were used for family maintenance purposes, while 18% were used to deposit in banks, according to the RBI survey.
The survey also suggested that around 36% of the total remittance inflows in Mumbai were from the Gulf countries, while 34% of remittances were received from North America.
Workers' remittances have remained an important source of external finance for the state since the last three decades. Remittances essentially represent household income from foreign economies arising mainly from the temporary or permanent movement of workers to other countries, largely in search of alternate job opportunities.
