New Delhi, February 14 Congress leader Jairam Ramesh called for reducing the time and cost of domestic remittances on Saturday, stating that they help the economies of several eastern and northern states, including Uttar Pradesh.
In a post on X, he noted that while remittances from abroad to India receive more policy attention than domestic remittances, this needs to change due to the volume of domestic remittances, as well as their socio-economic profile.
"Remittances from abroad to India in 2025 totalled approximately USD 135 billion. This represents about 3.4 per cent of GDP. These remittances have been extremely important for managing the country's balance of payments and have been crucial for the economies of states like Kerala. These remittances have been extensively studied," Ramesh said.
On the other hand, he pointed out that there is less awareness regarding the scale of domestic remittances, which refers to money sent by migrant workers from one state to another within India.
He cited estimates for Kerala, indicating that domestic remittances from the state may account for about one-third of the overseas remittances received by it.
Ramesh referenced an article by Robbin Van Jan Duijne, a scholar at the University of Amsterdam, published in The India Forum, which estimates domestic remittances across India to be between USD 36 billion and USD 48 billion in 2024.
"This represents anywhere between a third and two-fifths of remittances to India from overseas. Unfortunately, these domestic remittances generate less attention, create less enthusiasm, and do not receive the policy attention that remittances from overseas receive.
"This needs to change, given both the volume of domestic remittances, as well as their socio-economic profile. The time and cost of these remittances should be reduced. Domestic remittances are significantly helping the economies of eastern states, as well as some northern states like Uttar Pradesh," the Congress leader said in his post.