Brief by Shorts91 Newsdesk / 11:09am on 01 Apr 2024,Monday India Global
Overseas Indians set a new record by sending home $29 billion in remittances during the December quarter. This surge is attributed to rising returns from FCNR instruments, surpassing bank deposits in the West. Remittances play a vital role in reducing India's current account deficit (CAD), progressively decreasing over time. The United States leads in remittances, contributing 23%, while the Gulf region experiences a decline. India remains the largest recipient of remittances, benefiting from its diaspora since the 1990s software boom. Remittance inflows, alongside service exports, helped decrease India's CAD to 1.2% of GDP.
