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India tops the list for foreign remittances

India sees more remittances than any other country, a new report indicates.

While several recent reports have suggested that India needs to see more remittance volume to improve its economy, a recent report indicates the country already receives more money transfers than any other country on earth.

According to the Hindu Business Line, the top destination for remittance flows is India, while those in the U.S., South America and the Gulf region lead the way among parts of the world where most of the transfers originate from.

The paper reports that while the advent of the internet has enabled more people to send money to India quickly and securely, demand for well-trained professionals from the country has given Indians the resources they need to satisfy their families' material needs. Indians with training in information technology, medicine, engineering and life sciences are among those who've been in high demand over the past 10 years. Because their salaries tend to be much greater than what the average Indian earns, the number of remittances – as well as how much is being sent for each transaction – has increased.

"[As] Indian emigrants have grown in stature, so have remittances," the newspaper noted

For a long time now, India has been among the world leaders in remittances. However, it's jumped by leaps and bounds within the past eight years. For example, The Hindu Business Line reports that remittances averaged around $13.1 billion in 2001. But by 2009, they skyrocketed to $46 billion.

Remittances to India haven't been in a constant state of improvement, however. Between 1990 and 2004, flows increased steadily from year to year, only to fall somewhat significantly in 2005 and 2006. The drop was large enough  to send the percentage of India's Gross Domestic Product from remittances from 3.7 percent to 3 percent. Since then, however, Indian remittances have been on the rise again, with the percentage of GDP at 4 percent by 2009.

Thanks to Xoom, sending money to India couldn't get much simpler. The instructions on how to send your first money transfer are clear and straightforward, so you shouldn't have any problem after you sign up.

Now that you're in the U.S., take care of your family and continue to help India's economy improve by sending remittances back to the other country you like to call home.

Read more from India, Other
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