Remittances fell to a four-quarter low in the June quarter

Mumbai: The volume of remittances by Indians who have gone abroad for work has been at the lowest level in the last four quarters in the June quarter. According to the data released by the Reserve Bank of India (RBI), remittances by Indians who have gone to work abroad in the June quarter of the current year. The figure stood at $14.47 billion, down 1.40 percent from the March quarter and down 0.10 percent from the June quarter last year.

The country's current account deficit widened to $9.20 billion in the first quarter of the current financial year from $1.30 billion in the March quarter. However, the deficit figure was as high as 17.90 billion dollars in the June quarter of 2022.

The decline in remittances is alarming. Uncertainty at the global level is believed to have had an impact on remittances. Although the rise in crude oil prices may see an increase in remittances, the current account deficit will also widen.

Remittances form an important part of India's balance of payments. In 2022, remittances increased by 12 percent compared to 2021 and reached a record number of 100 billion dollars.

With the easing of restrictions related to Corona, the remittances increased last year due to the repatriation of employees from India, especially in the Gulf countries, and the increase in the price of crude oil.