India Remittances: There is a sudden increase in remittances coming from Gulf countries to India. It can be increased further. In fact, there is a constant weakness in the Indian currency. It has reached around 74 per dollar. Experts are assuming that the rupee may weaken further. On the other hand, Teli remains in the index. In such a situation, you will see a surge in the remittances coming in the country in the coming days. Let us know that India is number one in the world in getting remittance. However, there was a huge drop in remittances due to the homecoming in lockdown.
India No.1 in case of remittance
India had a total remittance of 83.1 million dollars in 2019. However, the World Bank estimates that due to the lockdown in 2020, it may fall by 20 per cent and it may come down to $ 6700 million. In fact, since April, due to the coronavirus epidemic, millions of livelihood workers living abroad have returned home. Due to which the remittance is expected to be less this year. In April this year, crude went down to lower levels, causing a job crisis in Gulf Countries. This also affected the remittance coming to India. However, recently there has been a surge in remittances due to the weakness in the rupee.
After India, the top countries to get remittances are China ($ 665 million), Mexico ($ 385 million), the Philippines ($ 3520 million) and Egypt ($ 268 million).
55% of Gulf countries in 17 million
According to the United Nation, 55 percent of the people who go from India to earn livelihood in other countries are living in Gulf countries. The number of such people around the world is around 17 million, of which 55 per cent are in Gulf countries. At the same time, 54 percent of the remittances coming to India comes from the Gulf countries.
Rupee will increase
Ajay Kedia, director of Kedia Advisory, says that this year the relief amid falling remittances is that it has seen a boom in recent times. The main reason for this is the fall in the rupee. The rupee is currently trading once again around 74 dollars per dollar. But the way the dollar index is strengthening due to the Presidential election in the US, the rupee will remain weak. Domestically, the demand in the festive season has not been as per expected. Many small size businesses have closed due to the lockdown. Among those who are open, business activity is still sluggish. Due to these reasons, the rupee may weaken to Rs 74.75 per dollar by mid-November. The decline is increasing even further. Weakness in rupee means more rupee in one dollar. Therefore, there is a surge in remittances, which can increase further.
Need for measures to increase demand
The relief package that was announced or the foreign currency reserve in Deya is now discounted for the market. In such a situation, a Freya relief package is awaited from the government. With which demand can be increased. If there is no such trigger, the rupee may fall further. Explain that after the rupee weakened to 77 per dollar in April, it strengthened to 72.50 per dollar in the following months. But since then the rupee has started declining and it is around 74 per dollar.