Inward remittances to India from Gulf countries on a sharp decline

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Kuwaiti parliamentarians have called on the government to ban the entry of BJP members into the country

By Syed Ali Mujtaba

The RBI remittances survey 2020-21 has revealed that the remittances from the Gulf countries to India have sharply declined. The cumulative inward remittances to India have plumed from 50 percent in 2016-17 to 30 percent in 2020-21.

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According to the RBI remittances survey 2020-21, the remittances to southern states like Kerala, Tamil Nadu, and Karnataka have almost halved in 2020-21 when compared to what these states used to receive in 2016-17.

India mostly receives remittances from the UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Qatar, etc. The UAE, which was the top source of remittances for Indians, is now in the second spot with the US taking the lead. It is being inferred that the job avenues for Indians are drying up in the gulf region.

The southern states that have strong dominance in gulf countries and use to receive a significant share of the total remittances received by the entire country are most affected by the loss of jobs in the Gulf region.

Kerala which used to be the top recipient of remittances from the Gulf region no longer holds the number one position. Currently, Maharashtra is on the top of the list of states that receive remittances.  It is followed by Kerala, Tamil Nadu, Delhi, Karnataka, Andhra Pradesh, Uttar Pradesh, Gujarat, Punjab, and Bihar.

One of the reasons for the decline of remittances from the Gulf countries to the Southern states could be the migration of semi-skilled workers from Uttar Pradesh, Bihar, Orissa, and West Bengal.  They are being hired in the Gulf countries on much lesser salaries than the people from the Southern states.

The US, the UK, Singapore, Hong Kong, and Australia have emerged as important sources of remittances for India. Among them the US tops the list whereas; the UAE is in the second spot. The cumulative remittances account for 36 percent of total India’s remittances. However, in overall terms, Indian remittances have gone down from 50 percent to 36 percent. The decline is due to the drying up of job opportunities for the Indians in the Gulf region.

There are various reasons given for the loss of job opportunities for the Indians in the Gulf region. One of them that is prominently doing rounds is speculated to be the domestic policy of the BJP government which is loaded against the Muslim minority community of India.  Soon after the breakout of the Pandemics in 2020, an Indian Muslim religious group Tablighi Jammat was hounded by the government and the people for spreading coronavirus in the country. This had led many countries in the Gulf region to raise their voice of concern against the persecution of Muslims going on in India.

 Many private organizations in the Gulf region had sent back Indians who were active on social media spreading hatred against Muslims while eking out their living from Muslim organizations in the Gulf region.

Nupur Sharma’s intemperate remarks have further added salt to the injuries to the Muslims globally, and also to the countries in the Gulf region. The persistent support for her by many in India in the name of freedom of expression while putting in jail many human rights activists exposes the forces at work in India against the Muslim community.

This is widely believed to be the reason why employers in the Gulf countries are reducing the size of employees from India. And this is reflected in the sharp decline in the remittances coming to India.

4 COMMENTS

  1. Since the Indian rupees are becoming weak people who are in the middle East may keep the money there to buy gold

  2. Havala transactions are at rise in the states of Kerala, tamil nadu, karnataka.
    Anti national organization s are creating overseas assets and illegal money generated here in India by a ,..peaceful” community is utilized for remittances
    It’s a serious issue of national security

  3. Southern states specially uses illegal ways to send black money to India they are always against the interest of India ..now that they cannot compete against Modi politically many of them have become anti India ..but it’s not gonna last for long..India is safe under modiji.

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