Reevaluating Domestic Remittances: A Call for Change
Congress leader Jairam Ramesh highlights the need for reducing time and costs associated with domestic remittances in India. Despite their substantial volume, these remittances receive less policy attention compared to international remittances, which are vital to many Indian states' economies, including those in the east and north.
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On Saturday, Congress leader Jairam Ramesh advocated for a significant reduction in both the time and cost involved in processing domestic remittances in India. He emphasized that these funds, transferred within the country, play a crucial role in bolstering the economies of several states, particularly in the eastern and northern regions, like Uttar Pradesh.
In a post on X, Ramesh highlighted that domestic remittances have not been receiving the policy focus they deserve, unlike international remittances which account for approximately 3.4% of India's GDP. He noted that foreign remittances, which amounted to around USD 135 billion in 2025, have been well studied and are essential for maintaining India's balance of payments, particularly benefiting states like Kerala.
Referring to research by scholar Robbin Van Jan Duijne from the University of Amsterdam, Ramesh mentioned that domestic remittances in 2024 are estimated to be between USD 36 billion and USD 48 billion. This forms a significant portion of India's overall remittance inflow, yet they garner less attention. He urged for a shift in focus, calling for policy changes to ease domestic remittances, and ultimately support the socio-economic framework across various Indian states.
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