Context:
Remittances to India from advanced economies surpass Gulf inflows: RBI
India’s Remittances:
- Remittances are transfers (cash or goods) sent by migrants to support their families back home.
- Global Status – India has been the world’s top recipient of remittances since 2008 (World Bank).
- Trends in Remittances –
- Increased from $55.6 billion (2010-11) to $118.7 billion (2023-24).
- Around 3% of GDP since 2000.
- Source Countries – Shift towards advanced economies due to skilled migration.
- United States (largest contributor) and United Kingdom together account for 40% of remittances.
- Decline in the share of Gulf economies (e.g., UAE).
- State-wise Distribution – Maharashtra, followed by Kerala and Tamil Nadu, are the leading recipient states.
- Cost of Remittances – Lower in India compared to the global average, aided by digitalization.
- Significance of Remittances –
- Finance 42% of India’s trade deficit.
- Consistently surpassed FDI inflows in recent years.
Source: BS
Previous Year Question
Consider the following statements:
Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
Which one of the following is correct in respect of the above statements?
[UPSC Civil Services Exam – 2023 Prelims]
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-1
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-1
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
Answer: (a)