{"id":78152,"date":"2026-07-01T15:37:00","date_gmt":"2026-07-01T10:07:00","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=78152"},"modified":"2026-07-01T18:40:22","modified_gmt":"2026-07-01T13:10:22","slug":"rise-in-gulf-remittances","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/01-07-2026\/rise-in-gulf-remittances","title":{"rendered":"Rise in Gulf Remittances\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As per the Monthly Economic Review by the Department of Economic Affairs, <strong>despite the West Asia crisis, net remittances from the region to India rose to $16 billion<\/strong> in April 2026, up <strong>70% over the same period of last year.\u00a0<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>In FY26, <\/strong>remittances rose <strong>to a record $155.1 billion, up from $135.4 billion in FY25,<\/strong> registering a<strong> 14.5% year-on-year increase.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>As a share of GDP,<\/strong> remittances <strong>increased to 4.0% in FY26 from 3.6% in the previous year.<\/strong><\/li>\n\n\n\n<li><strong>Contrary to concerns that geopolitical tensions in the West Asia region<\/strong> could adversely affect remittance inflows from the Gulf economies, transfer receipts have remained robust.\n<ul class=\"wp-block-list\">\n<li>This resilience in remittances is because they are pegged to labour market conditions in the region and do not get affected by short-term crises, unlike more volatile flows like FDI, portfolio flows, or debt flows.<\/li>\n\n\n\n<li>The report found that remittances have<strong> historically been among the most stable components of external financing.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Remittances<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Remittances <\/strong>are a way to electronically send funds to people, often family, in another country.\n<ul class=\"wp-block-list\">\n<li>Usually sent by individuals working in foreign countries, especially those employed in blue-collar or skilled jobs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Modes of Transfer:<\/strong> Remittances can be sent through banks, money transfer operators, or digital platforms.<\/li>\n\n\n\n<li><strong>Two Types of Remittances: <\/strong>There are two types of remittances based on the transaction purpose<strong>: Inward Remittance and Outward Remittance<\/strong>.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inward Remittance:<\/strong> The term inward remittance indicates transfer of funds from one account to another either domestically or internationally.<\/li>\n\n\n\n<li><strong>Outward Remittance: <\/strong>The transfer of funds out of the country or overseas is termed as outward remittance.<\/li>\n\n\n\n<li><strong>Impact:<\/strong> Remittances are a significant source of income for many countries, contributing to their economic stability, supporting local economies, and sometimes helping to finance national trade deficits.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/despite-war-net-remittances-from-west-asia-to-india-rose-70-in-april-2026\/article71165898.ece\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong><br \/>\nContext<\/p>\n<p><\/strong><\/p>\n<li class=\"ms-5\">\n<p>As per the Monthly Economic Review by the Department of Economic Affairs, despite the West Asia crisis, net remittances from the region to India rose to $16 billion in April 2026, up 70% over the same period of last year.<\/p>\n<\/li>\n<p><\/p>\n<p><strong><br \/>\nAbout<\/p>\n<p><\/strong><\/p>\n<li class=\"ms-5\"\t>\n<p>In FY26, remittances rose to a record $155.1 billion, up from $135.4 billion in FY25, registering a 14.5% year-on-year increase.<\/p>\n<\/li>\n<li class=\"ms-5\">\n<p>As a share of GDP, remittances increased to 4.0% in FY26 from 3.6% in the previous year.<\/p>\n<\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/01-07-2026\/rise-in-gulf-remittances \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-78152","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=78152"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78152\/revisions"}],"predecessor-version":[{"id":78159,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78152\/revisions\/78159"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=78152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=78152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=78152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}