Remittances from Gulf to India contracting every year

Remittances from Gulf to India contracting every year
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Hyderabad: India is witnessing a shrink in the remittances from the Gulf countries. There has been a 20 percent decline in the foreign exchange in the past three years.

The foreign exchange was first contracted in 2015 as per a report published by the World Bank. In 2014, the remittances were amounted to $70.4 billion, but was recorded $68.9 billion in 2015. A nine percent decline was seen from 2015 to 2016-17, with only $62.7 billion coming in.

Whereas, the Reserve Bank of India said there was a 12 percent drop in 2016-17, and the foreign exchange was recorded as Rs 3.66 lakh crore, while in 2015, it was Rs 4.38 lakh crore, quotes Deccan Chronicle.

As per Mohammad Ali Shabbir, minister of NRI affairs, Gulf countries are facing a shortage of crude oil since 2013-14. He added that the price of crude oil is also reducing which was between $150 and $157 per barrel in 2013-14, now has come down to $50 per barrel.

“Indian workers are suffering due to the cancellation of mega projects in Dubai, Qatar and the Kingdom of Saudi Arabia. After India, China receives the second highest amount in the form of remittances from Gulf,” Mr Shabbir said.