Consider the following statements about remittances:
1. India’s remittances have more than tripled from 2010-11 to 2023-24.
2. The cost of sending remittances to India is lower than the global average cost.
3. USA,UAE and UK are the top three sources of remittances into India.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,2 and 3
Explanation Statement 1 is not correct: As per the RBI Bulletin March 2025 India’s remittances have more than doubled from US$ 55.6 billion in 2010-11 to US$ 118.7 billion in 2023-24. While financing around half of India’s merchandise trade deficit, net remittance receipts have been an important absorber of external shocks during this period. India’s remittance receipts have generally remained higher than India’s gross inward foreign direct investment (FDI) flows, thus establishing their importance as a stable source of external financing.
Statement 2 is correct:The cost of sending remittances to India is lower than the global average cost, driven by digitalisation but remains higher than the SDG target of 3 per cent for US$ 200. Furthermore, fintech companies offer affordable cross-border remittance services, fostering competition among different remittance service providers.
Statement 3 is correct: The highest contribution came from the United States, accounting for 27.7 percent of the total remittances.UAE maintained its position as the second largest source of India's remittances, with its share increasing from 18 percent in 2020-21 to 19.2 per cent in 2023-24.UK contributes for 10.8 percentage of remittances.
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