Remittances to Kerala soar to Dh47bn

Remittances to Kerala rose to Rs758 billion (Dh47.37bn), crossing the annual target in just six months of 2013, according to a report.

"Remittances in Kerala have already crossed their annual target within the first six months of the year itself, recording inflows of over Rs75,800 crore," Dubai-based UAE Exchange said in a report.

The strengthening of US dollar against the rupee has led to an increase in remittances this year across the country as well. Last year, the state had received Rs582bn from migrant workers.

Remittances by NRIs rose 27 per cent between January and September to $6.5bn, which is the highest since 2008, for UAE Exchange. By end of 2013, it estimates the figure will reach $8.5bn.

"We have seen a sharp spike in remittances volume as the expats are taking advantage of the sharp fall in the rupee. The ongoing festive season will also add at least 10-12 per cent to the spurt in transaction volumes. Accordingly, we expect our volume to touch a record USD 8.5bn this year," UAE Exchange vice-president for global operations Promoth Manghat said.

Average transaction volumes rose by 27 per cent this year and average transaction size went up by 7 per cent to $830 as compared to $775 in 2012.

UAE Exchange said most NRIs choose to remit money into India for gifting purposes during the festive season, apart from purchase of gold and other investment options such as fixed deposits and real estate.

India will continue to remain the top remittances destination this year with over $71bn, up from $69.2bn in 2012, the World Bank has said.

"With the weakening of the Indian rupee, a surge in remittances is expected as nonresident Indians take advantage of the cheaper goods, services and assets back home. Remittances to India are expected to reach $71bn in 2013," the organisation said.

And if India maintains its current ratio, it should get $90bn in remittances in 2016.

Developing countries will together get $414bn in remittance in 2013 with China getting $60bn inflow from its workers overseas. The total world remittances are pegged at $550bn this year, which is projected to increase to $700bn by 2016.


 

Follow Emirates 24|7 on Google News.