The upsurge in the number of Indians living abroad is continuously
increasing the remittance of money from abroad into India. According
to experts the market is expected to flourish on a continual basis.
GM and head of NRI services, ICICI Bank, Manish Misra said that India
will remain a big market for remittances. The business is growing at
10-12 per cent and the growth is expected to continue over the next
RBI data reveals that remittances into India were $27.2 billion in 2006-07
as compared to $24.3 billion a year earlier.
Mr. Misra further pointed out that NRIs are investing heavily in the
real estate and equity markets. NRI deposits are also gaining popularity,
the total NRI deposit base in India accounts for close to $40 billion,
which is expected to grow at more than 10 per cent.
One of the largest players in the remittance business with a worldwide
market share of 17 per cent, Western Union Financial Services also expects
the boom in the business to continue in India.
Anil Kapur, Managing Director, south Asia with Western Union quested
"India is one of the fastest growing remittance markets in the
world largely due to the number of Indians migrating to developed countries
in search of work. The Indian remittance market has grown at 20 per
cent, from $11 billion in 2001."
According to an industry source, of the $28 billion that came into India
in 2006-07, an estimated $10 billion came from the US. The next highest
source of foreign remittances is the Gulf countries. "North America
has replaced Gulf countries as the most important source of remittances,"
said a foreign bank official. The UK, Australia, New Zealand and Canada
are also fast catching up because of their need for skilled labour.
The worldwide remittance business is growing at 8 per cent a year and
stood at $269 billion in 2006-07. India accounts for over 20 per cent
of remittances into developing countries. China received $23 billion
of remittances in 2006-07.