Crude price revival is unlikely to lift India’s remittances instantly
The disruption caused by covid-19 has left a deep scar on India’s remittances inflow. India’s secondary income receipts, which mainly represents remittances, fell by around 8% year-on-year (y-o-y) in Q2FY21, according to official data.
At the end of the September quarter, remittances to India stood at $1.8 billion. For the first half of FY21, the decline was to the tune of 6.7% y-o-y.
This fall is not surprising considering that the World Bank predicted remittances to see a historic decline of 20% in 2020 to $445 billion. Uncertainties related to global employment opportunities and the resurgence of the virus could hinder the revival of remittances.
