Remittances played a pivotal role in India's economy, with a significant portion coming from Arab countries. According to recent data released by the world bank for the year 2021, remittances from the Arab world constituted a substantial 58.15% of the total remittance inflows into India.
The United Arab Emirates (UAE) led the pack, contributing a whopping 19,821.1 million, which equates to 44.1% of its total global remittance outflow. Notably, Saudi Arabia followed with a remittance contribution of 13,052.3 million to India, making up 27.8% of its total remittance outflows worldwide.
Other Gulf countries, such as Oman and Kuwait, also had significant contributions, with remittance inflows into India amounting to 6,413.2 million and 6,356.3 million, respectively. These numbers account for 64.9% and 40.5% of their respective global remittance outflows.
Qatar and Bahrain made notable contributions as well, with remittance inflows of 4,431.7 million and 1,833.1 million, respectively. These figures represent 36.6% and 43.7% of their total global remittance outflows.
On the lower end of the spectrum, countries like Jordan, Libya, Sudan, Lebanon, Egypt, and Iraq contributed minimally to India's remittance inflows, with percentages ranging from 0.5% to 1.7% of their total global outflows.
In total, the remittance inflows from Arab countries to India in 2021 stood at an impressive 51,972.3 million out of India's total remittance inflows of 89,375.2 million.
These figures underscore the profound economic ties and interdependence between India and the Arab world, especially in the Gulf region. The high volume of remittances can be attributed to the vast Indian expatriate community in the Arab countries, many of whom have been residing there for decades. Their contributions to the Arab economies in various sectors, from construction to IT, have been pivotal.