DUBLIN, Dec. 19, 2023 /PRNewswire/ — The “India International Remittance Market Business and Investment Opportunities – Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q2 2023” report has been added to ResearchAndMarkets.com’s offering.
The international inbound remittance market in India has increased at 14.4% during 2022 to reach US$ 111.22 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 11.9%, increasing from US$ 97.20 billion in 2022 to reach US$ 195.34 billion by 2028.
The international outbound remittance market in India has increased at 13.8% during 2022 to reach US$ 10.08 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 11.4%, increasing from US$ 8.86 billion in 2022 to reach US$ 17.28 billion by 2028.
India has reported strong growth in the inward remittances market over the last three to four years. However, in 2023, the market is expected to report a considerable slowdown owing to factors like rising inflation and interest rate environment, which has subsequently resulted in economic slowdown in most global nations. Layoffs from big tech institutions are another factor that is aiding the drop in inward remittances in 2023.
The impact of current macroeconomic factors is expected to continue over the next few quarters, leading into Q4 2023 and Q1 2024. However, the long-term outlook remains positive. To tap into the multi-billion industry, players are entering into strategic collaborations to launch digital remittance services. Furthermore, firms are also raising funding to expand their remittance offerings.
Remittance inflows declined in 2023 due to slow down in the Organisation for Economic Co-operation and Development economies
According to a report released by the World Bank, remittance inflows are expected to be affected because of the slower growth rate in the Organisation for Economic Co-operation and Development economies. Based on the report, remittance inflow to India is projected to grow by 0.2% in 2023, after recording a significant growth of more than 24% in 2022.
Large-scale layoffs, announced in the United States, by tech firms have also resulted in many Indian migrants returning to India in 2023. Microsoft, Meta, and Google are among the top tech firms that have announced mass layoffs over the last few quarters due to the rising interest rate environment. As 36% of the remittances to India are attributed to highly skilled migrants, the ramifications of tech layoffs will extend to the remittance inflows market in India.
Indian banking firms are forging strategic alliances to launch digital inward remittance services
Digital remittance services gained strong momentum during the global pandemic outbreak and the trend is projected to further continue from the short to medium-term perspective. Consequently, to tap into the growing sector, Indian banking institutions are forging strategic partnerships with global players.
- IndusInd Bank, for instance, entered into a strategic collaboration with Viamericas Corporation in October. As part of the partnership, the two firms are enabling digital inward remittance from the United States to India.
- Federal Bank of India, another prominent banking firm in India, also entered into a partnership with the National Bank of Oman in October 2023. The alliance will enable the two firms to introduce money transfers from Oman to India. The National Bank of Oman’s customers will be able to remit money in INR to their beneficiaries in India.
In addition to the launch of these new offerings, global firms are also re-launching their products in India to tap into the growth market. Instarem, in November 2023, relaunched its digital remittance service offering, largely catering to the needs of students and individuals seeking overseas education. Instarem, since 2018, has been serving customers in India. However, in 2023, the firm paused its operations due to a directive of the central bank to SBM Bank, which also impacted many other remittance providers in the region.
Startups are raising funding rounds to further expand their product offerings and accelerate growth
Billions of dollars are moving across borders every year and this growth in the remittance industry is led by the digital disruption accelerated by the global pandemic outbreak. To garner a higher market share in the industry, startups in the space are raising funding rounds in India in 2023.
- Abound, the Indian cashback and rewards app announced that the firm had raised US$10 million in a funding round in July 2023. The app, which is owned by the Times of India, has been specifically designed for Indians living in the United States. In addition to digital remittance services, members of the Abound app can also earn cash-linked and royalty rewards and online and offline commerce.
Going forward, more such innovative startups are expected to enter the Indian digital remittance sectors and raise funding rounds from global venture capital and private equity players. The presence of these innovative startups in the Indian market will aid the competitive landscape, thereby supporting the growth of the broader industry from the short to medium-term perspective.
This report provides a comprehensive analysis of the international inbound and outbound remittance market in India. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending/receiving countries.
Report Scope
International Inbound Market Opportunity Trend Analysis in India
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
Market Share of Key Players in India
International Inbound Market Opportunity Trend Analysis by Channel in India
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Inbound Remittance Analysis of Consumer Profile in India
- Analysis by age group of senders
- Analysis by income of senders
- Analysis by occupation of senders
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Inbound Remittance Flow Analysis (Country to State/Region) in India
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state/regions
International Outbound Market Opportunity Trend Analysis in India
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Outbound Market Opportunity Trend Analysis by Channel in India
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Outbound Remittance Analysis of Consumer Profile in India
- Analysis by age group of senders
- Analysis by income of sender
- Analysis by occupation of sender
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Outbound Remittance Flow Analysis (State/Region to Country) in India
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state/regions
For more information about this report visit https://www.researchandmarkets.com/r/7w8y8f
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