India’s importance to remittance
India retains the top position in the list of remittances recipient. It is estimated that about 4% of India’s GDP depends on remittances. In 2014 about more than $70 billion were transferred in remittances to India. Around 40% of the international money transfers to India goes to states like Kerala, Tamil Nadu, Punjab and Uttar Pradesh.
India receives about 31% of international money transfers from West Asia with United Arab Emirates(UAE) and Saudi Arabia as leading countries for remittance to India. Secondly, India receives about 29% in remittances from the North America and about 19% from Europe.
From where do India get most of its remittance?
Countries like UAE ($14Bn), USA ($11Bn) and Saudi Arabia ($7.5Bn) are the top 3 sources of remittances to India. Money Transfer services to India are many. Big banks and large financial institutions are now playing a major role in supporting money transfer services to India. There has been a huge competition in this market with all remittance service providers targeting the foreign workers from India. Great discounts and gifts per each transaction has made this market to be much competitive between the remittance service Providers.
Compare the whole list of remittance providers to India if you would like to get a full comparison report.
Remittance Service Providers:
Below are some of the best remittance service providers to India.
- Ria Money Transfer
- Small World Fs
- Transfer Wise
- Western Union
- World Remit
- Remit 2 India
2016 – USD to INR exchange forecast:
Major sources have forecasted that all along 2016 the impact on the global markets will make a small rise for the USD against the INR. The forecast for June estimates that the maximum exchange rate could go around 68.50 and the minimum could be around 66.50. The forecast for the end of the year November estimates that the INR may go for a maximum in the history at around 71.50 INR whereas the minimum could be around 68.30. With this INR might toggle around 68 – 69 by the end of 2016.
As of May, 30 2016 it is expected that the USD/INR pair would mostly float around 67-67.50 till the mid of June considering the global impact on the oil prices and the federal announcements.
The country is keenly looking at having Raghuram Rajan (Governor of the Reserve Bank of India) for a second term where his fate is on focussing at the markets rather than the rate cut.