Remittances to India are estimated to decline sharply by about 25 per cent in FY2021 amid the economic crisis induced by the COVID-19 pandemic and shutdown, according to a global banking group. “Based on an analysis, we expect private transfers to slow to $55-60 billion in FY21 on a year-on-year basis,” Swiss banking group UBS said.
India is the largest recipient of remittances (in value terms) in the worId and received nearly $76 billion of flows (2.7 per cent of GDP) in FY20. These flows help boost household income, support private consumption and add stability to current account balance (CAB), UBS said in a report.
