Remittances sent home by Indians lack financial planning, report suggests
India received $118.7 billion from people abroad in 2023-24, with Kerala and Tamil Nadu accounting for nearly a third of the total.
According to The New Indian Express, India received $118.7 billion from its people living abroad during 2023-24. Kerala and Tamil Nadu together account for close to a third of these remittances.
The Kerala Migration Survey of 2023 revealed that the largest single use of received money was renovating a house or a shop at nearly 16 per cent. Repaying bank loans was the second largest use at 14 per cent, while 3 per cent went to informal lenders.
The survey also found that recipient households held nearly 10 per cent of the money as cash in hand. Only 4 per cent was put into deposits of any kind.
Regarding medical expenses, 7.7 per cent of the money was spent on health and medical bills. In contrast, only 2.1 per cent was put into insurance.
Nehal Mota, co-founder of Finnovate Financial Services, suggests that families should prioritise clearing debts and moving cash from homes into bank accounts. Mota also notes that health insurance could help absorb medical costs more efficiently than paying bills directly.