Remittance

noun (countable/uncountable)

/rɪˈmɪtəns/

Money transferred by migrants to recipients in their home country, constituting a critical source of foreign exchange, household income, and consumption support in origin regions. India has been the world's largest recipient of remittances since 2008; it received $129 billion in inward remittances in 2024 (World Bank Remittances Brief, Nov 2024), accounting for approximately 3.4% of GDP, with the United States, UAE, Saudi Arabia, and United Kingdom as the top source countries.

✍️ Usage in a UPSC answer

India's record $129 billion in remittance inflows in 2024 not only stabilised the current account deficit during a period of elevated oil imports but also provided direct income support to an estimated 30–40 million households, underscoring remittances as India's largest external capital inflow ahead of FDI.

Synonyms

diaspora transfermigrant transferoverseas remittancemoney transferrepatriation

Antonyms

capital flightoutward remittancedivestment

🌱 Word Family

remit (verb), remitter (noun), remittee (noun), remittance inflow (noun phrase), diaspora remittance (noun phrase)

🔡 Root

Latin remittere = to send back (re- = back + mittere = to send); remittance = the act or amount of sending back

📜 Etymology

From Latin remittere (to send back), the word passed through Old French into Middle English by the 15th century, initially in legal contexts meaning to pardon or refer back a case. Its financial meaning — money sent (back) to one's homeland — emerged with large-scale labour migration in the 19th and 20th centuries. India's remittance economics gained global attention after the 1970s Gulf migration boom, which transformed Kerala, Punjab, and Andhra Pradesh.

🧠 Memory Hook

RE + MIT + TANCE: to RE-send money (MIT = send, as in 'mittere'). A Gulf worker RE-MITs wages back home — the 're' signals the money travels the reverse route, home to the family left behind.

💰 Indian Economy 📖 Seen in: Indian Economy — Growth, Planning & De...

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