The remittance to India has been consistently increasing over the past several years. In the year 2012, it is estimated that Non Resident Indians (NRIs) have sent over $70 billion to India – The largest remittance receiving country in the world, followed by China at $66 billion. In the prior year 2011, $64 billion was remitted to India, again closely followed by China at $62 billion, according to the World Bank.
Overall, money sent to developing countries was over $406 billion in 2012, an increase of 6.5 percent from the prior year. By 2015, developing countries are expected to receive overseas remittances of $534 billion, according to the recent report from the World Bank.
Well, how Much is $70 Billion?
- It is the yearly tax revenue of Andhra, Telangana and Orissa combined
- It takes over 3 years for Indian Railways to earn that much
- It is the overall GDP of country Kenya
Which regions were the key players of remittances to India in 2012? Have a look at the following infographic:
How the billion of dollars sent to India are likely to be utilized? Well, here is the breakdown according to the Reserve Bank of India (RBI):
With more income rolling in, spending habits of the middle class significantly shifted over the past few years. As we can see, many went through the transition from owning two wheelers to owning cars and other luxury items. Evidently, the driving force behind this significant increase in consumer spending is the strong financial stability of today’s middle class. Having said that, I strongly believe India’s success is built on hardworking and increasingly educated people who reside in India and other parts of the world.