Date:10/05/2007 URL: http://www.thehindubusinessline.com/2007/05/10/stories/2007051005400600.htm

Back `Rising rupee has not hit remittances'

Our Bureau

India likely to maintain its leading position this year too

Kochi May 9 India was the leading remittance receiving country in the world last year and received $26.9 billion from expatriate Indians.

"The growing strength of the rupee vis-à-vis the dollar has not affected the inflow of remittances into the country to any considerable extent," Mr Suvodeep Das, Marketing Director for South Asia of Western Union, told Business Line.

Most of the remittances come for consumption expenditure and there is no way NRIs can hold back these despatches and they form a vital and assured stream of foreign exchange inflow.

India, which recorded a 10 per cent growth in remittances from $23.4 billion in the earlier year, is likely to maintain its leading position this year as well.

The inflow in terms of foreign exchange is likely to remain unaffected but several of the low and middle-income households might be put to difficulties since they would be receiving lesser income in rupee terms, Mr Das said.

Western Union's share

Western Union had a 17.4 per cent share of the global remittances of $269 billion last year.

The 150-million customer-to-customer transactions generated $47 billion turnover.

The company clocked a total revenue of $4.5 billion. The global remittances are expected to grow to $289 billion this year and the company expects a revenue growth of 9-12 per cent, Mr Das said.