1 min read.Updated: 19 Jul 2022, 04:54 PM ISTShuja Asrar
The pandemic has reshaped the flow of remittances into India
Over the years, Gulf nations have been one of the biggest sources of remittances pouring into India. However, this changed during the first pandemic year of 2020-21, shows fresh data released by the Reserve Bank of India (RBI) last week. Remittances from the region dropped sharply, while those from the US and the UK gained. This reflects slower migration and the presence of Indian diaspora in informal sectors which were hit the most during the pandemic, said RBI officials Soumyasree Tewari and Ranjeeta Mishra in an article accompanying the data. Maharashtra outstripped Kerala to emerge as the biggest recipient of remittances among the Indian states. Maharashtra's share in remittances received by India more than doubled to 35.2% between 2016-17 and 2020-21, RBI data showed. The distress was further characterized by an uptick in small-sized remittances.