Remittance can be described as the process of transferring money or funds to country of origin. This process is used by majority migrants and NRI's residing all over the world. These people remit to India for various reasons like personal help, educational help, loan assistance and much more. It is mainly an act of transferring money to a different location for a certain obligation. There are two types of remittances - Internal transfers and International transfers. The international segment consists of the remitters that reside in foreign countries & want to transfer funds to their home countries. This process has become a pivotal resource for households in the country of origin. Majority of remittances are sent across to the developing countries according to various reports and surveys. Many financial pundits have been analyzing the potential of the migrants to the developing countries. This has also resulted in a creation of a link between the process and the GDP. There have been studies focused on the migration and remittance flow. The latest trends and outlooks have revealed that India has emerged as the biggest recipient of inward foreign transfers in last 5 years. Our country also takes the cake amongst other developing countries.
The technology is growing at a fast pace. This has made many remitters switch to the new-age techniques of money transfer. Majority people are switching from the traditional techniques that have been in place for many years. They are now trying new tech-savvy techniques to remit to India. There are large number of Indians residing in countries like the UK, USA, Canada and many more. They send money across to India for various reasons. This has made the country one of the leading beneficiaries because, unlike other countries that rely on transfers from unskilled or semi-skilled migrants, Indians have occupied prestigious positions in highly skilled workplaces. This is a result of massive changes in the trail of migration. For the past few decades, the migration trail was dominated by carpenters, plumber and unskilled workers attracted by the boom in the construction market. However, it is not the same anymore. Countries like United Kingdom, United States and Canada are now home to permanent migrants. The World Bank has projected a surging growth in the in regards to the remittance flow in the coming years. It will supposedly touch $ 515 Billion by 2015.
Thus, people who remit to India will continue to grow in the coming years & will be one of the major strengths of the Indian economy. The government should take a cue from this trend & give more importance as it will be important for India's economic growth.
