In FY 2011, the US’s share in remittances was 23.4%, while that of the United Arab Emirates was 18%. “Flows from North America and Europe are primarily driven by individuals working in the service sector and therefore depend on the macroeconomic conditions of the underlying countries,” states a research report by Axis Mutual Fund, In Mena Sectors, oil prices fuel the boom in construction and tourism that, when they rise, increase demand for labor.
In FY17, the Middle East North Africa (MENA) region accounted for 53% of total remittances to India. The share of the region declined to 28.6% in FY2011, MENA’s share in remittances declined to 28.6%, while North America increased marginally to 24% from 23.9% in FY2017.
While NRIs in the Gulf region largely remit their money to public sector banks, North American NRIs largely use private banks (and multinational companies) to remit money. As a result, the share of private banks among NRIs has increased to 53%, outpacing the public sector banks with the remaining 47%.
According to the report, the widespread belief that a large part of India’s NRI population is from Kerala is only partially true and is likely to change. Rising wages in the southern states have resulted in a decline in emigration. Approved about 50% of emigration by foreign Ministry in 2020 were from northern states like Uttar Pradesh, Orissa, Bihar and West Bengal.
“the role of dispatch” GSDP It is already falling in states like Kerala (7.5% as of FY 2011) and Karnataka, while it is rising in the northern states. The report said that the significant increase in remittance % of GSDP in Maharashtra and Delhi could be support for families with severe COVID impact and the GSDP itself declined drastically during FY 2011.