Remittances by non-resident Indians (NRIs) have been growing consistently. In fact India has maintained its position as the world's top recipient of overseas remittances receiving US$ 71 billion in 2013. India and China are expected to attract almost a third of total global remittances in 2013. The average transaction volume has registered a 27 per cent increase this year and average transaction size has registered an increase of 7 per cent in 2013.
Interestingly, the NRI remittances in the first half of 2013 stood at US$ 35.6 billion, slightly higher than total receipts from exports of telecommunications, computer and information services during the same period. Experts agree that NRI remittances act as a major counter balance when capital flows weaken besides providing support to the balance of payments. The growing NRI remittances account for about 3.7 per cent of the Indian GDP and can be expected to continue to make a major contribution to India's economy.