SRINAGAR: Jammu and Kashmir, with its substantial diaspora, accounted for just 0.3 per cent of India’s total inward remittances in 2020-21, according to the Reserve Bank of India’s latest survey. This places the region among the lowest recipients of the country’s remittance inflows, which stood at a significant USD 80.18 billion (80,185 million) during the period.
In contrast, states like Maharashtra, Kerala, and Tamil Nadu dominated the remittance landscape, benefiting from long-standing migration trends and strong financial linkages with their overseas workforce.
Maharashtra emerged as the largest beneficiary, receiving 35.2 per cent of total remittances, followed by Kerala at 10.2 per cent, Tamil Nadu at 9.7 per cent, and Delhi at 9.3 per cent. These states have well-established migrant networks, particularly in the Gulf region, Europe, and North America, ensuring steady financial inflows that contribute to local economies.
Jammu and Kashmir, despite having a significant number of workers abroad, particularly in the Middle East and Europe, has yet to realise its full remittance potential. The region’s inflows are lower than those of states like Punjab (3 per cent) and Uttar Pradesh (3.7 per cent), which have successfully leveraged remittances to support economic growth and household incomes.
West Bengal, which received 1.4 per cent of India’s total inward remittances, saw funds arriving primarily from the Gulf countries and Southeast Asia. The state’s remittance inflows accounted for 0.73 per cent of its Gross State Domestic Product, underscoring their importance in the regional economy.
For Jammu and Kashmir to increase its share of remittances, key steps such as improving banking infrastructure, facilitating smoother financial transactions, and promoting investment opportunities for the diaspora are essential. Encouraging expatriates to invest in local industries, tourism, and real estate could significantly enhance economic benefits for the region. The Jammu Kashmir share in remittances makes around US $ 240,555,000, which is less than Rs 2000 crore a year.
With India’s total inward remittances crossing USD 80 billion, states that proactively engage with their overseas populations and strengthen formal money transfer channels stand to gain immensely. Jammu and Kashmir has the potential to boost its remittance inflows by fostering stronger ties with its diaspora and creating a more investor-friendly environment.
