‘Remittances to India likely to decline 25%; fall in oil prices to hit flow from Gulf region’

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.