Average annual remittance into India per family from abroad is Rs. 2.30 lakh, according to a survey by money transfer service provider Western Union.
The study covered face-to-face interviews of about 2,600 respondents across the age group ranging from 22 to 64 years, who have received at least Rs. 50,000 in last one year from a relative in another country and have received money at least 3 times in last 12 months. The survey revealed facts and insights about the remittance flow and usage in India.
According to the World Bank, India remains the leader in receiving remittances and is estimated to receive approximately $71 billion in 2014 as against about $69 billion in 2013.
In a majority of the households, members have migrated outside India for better employment opportunity (56%) and to overcome financial challenges at home (41%) while 87% of senders have full time employment with 47% having white collared jobs and 40% blue collared jobs, the survey highlighted.
It further revealed that, overall 77% of the respondents agreed that remittances have reduced economic problems of their household with about 63% of the respondents agreeing that remittances have provided a significant improvement in their lifestyle and have led to better schooling & higher education.
The study was conducted by Western Union in association with Nielsen, a leading global provider of consumer information and insights, conducted across 7 states of India – Gujarat, Maharashtra, Kerala, West Bengal, Punjab, Tamil Nadu and Uttar Pradesh.
- Half of the respondents agreed that the remittances have helped in increased savings and investments.
- Approximately 90% of respondents in Punjab, Tamil Nadu & Uttar Pradesh have utilised the remittance money for extracurricular activities, insurance and education for children,
- In Gujarat, Kerala, Maharashtra and West Bengal, over 50% use the remittance money for bettering the house or changing the type of house.
Kiran Shetty, Regional Vice President and Managing Director, India & South Asia, Western Union said, “Remittances are used to raise the immediate standards of living and enable access to healthcare. Additionally, a significant portion of the money received from abroad is used to fund education, developing skills and the long term economic prospects of communities we serve.”
Source : Business Line