The second largest foreign exchange earner in India is the remittance of money sent by Indians working overseas.
Detailed answer to your question
As an expert in the field, I am pleased to provide a detailed answer to the question of the second largest foreign exchange earner in India. Based on my practical knowledge and experience, I can confidently state that the remittance of money sent by Indians working overseas is indeed the second largest foreign exchange earner in India.
Remittances refer to the funds transferred by individuals working in foreign countries back to their home country. India has a large population of citizens working abroad, and their remittances contribute significantly to the country’s economy. According to estimates, India receives billions of dollars in remittances each year, making it a crucial source of foreign exchange earnings.
To further support this statement, let me provide a quote from the World Bank, a well-known and reputable resource on global economic trends: “India has been the world’s top recipient of remittances for several years, reflecting the large Indian diaspora around the world.”
Here are some interesting facts about remittances in India:
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Scale of Remittances: According to the World Bank, India received a staggering $83 billion in remittances in 2020, maintaining its position as the largest recipient of remittances globally.
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Contribution to GDP: Remittances play a vital role in India’s economy, contributing around 3-4% to the country’s GDP. This significant contribution highlights the importance of remittances as a foreign exchange earner.
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Employment Opportunities: The availability of employment opportunities in foreign countries has been one of the key factors driving Indian workers to seek employment abroad. This steady flow of overseas employment further fuels the remittance inflow.
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Impact on Rural Areas: Remittances often have a profound impact on the rural areas of India, where many migrants hail from. The funds sent back are frequently utilized for various purposes, such as education, healthcare, or investment in small businesses, which uplifts the standard of living in these regions.
To present the information more comprehensively, here is a table showcasing the top recipients of remittances in 2020:
| Country | Remittance Inflow (in billions of USD) |
|---|---|
| India | 83 |
| China | 60 |
| Mexico | 43 |
| Philippines | 34 |
| Egypt | 30 |
In conclusion, it is evident that the remittance of money sent by Indians working overseas holds the position of the second largest foreign exchange earner in India. The significant influx of funds through remittances plays a vital role in India’s economy, benefiting individuals, communities, and the nation as a whole.
Response video to “Which is second largest foreign exchange earner in India?”
According to Indian Prime Minister Narendra Modi and RBI Deputy Governor Michael Patra, India has the potential to become the world’s largest economy in the future. Factors such as a growing GDP, foreign exchange reserves, exports, foreign direct investment, income from tourism, remittances, IT exports, a young workforce, improving poverty rates, and increased urbanization contribute to this potential. While the video doesn’t provide specific reasons for India’s potential growth, it suggests that if India sustains its current trajectory, it is feasible for them to become the largest economy.
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Indian Economy At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector.
At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector.
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In this way, Which is the highest source of foreign exchange earner for India? And the exchange value can be determined by the market. Complete answer: Out of the given options, the industry in which India earns its maximum foreign exchange is Iron industry.
Additionally, Which is the highest foreign exchange earner? As a response to this: Tea, Kenya’s leading export, earned the country $1.2 billion in 2022, followed closely by horticulture at $901 million, chemicals ($521 million), coffee ($301 million) and petroleum products ($77 million), highlighting the crucial role of remittances in bringing in foreign currencies.
Likewise, Which of the following sectors India earns most of foreign currency? The Tea Industry in India is the major foreign exchange earner and labour intensive employment generation sector. India is the second largest producer of tea in the world.
Considering this, Which of the following export is earning large foreign exchange from India? Response will be: information technology
Solution: India earns a lot of money in foreign exchange through exporting information technology.
Thereof, Is India the fifth largest foreign exchange holder in the world?
As an answer to this: With India’s forex reserves at $608.99 billion as on June 25, 2021 stood, India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.
In this regard, Which industry earns maximum foreign exchange in India?
In reply to that: Complete answer: Out of the given options, the industry in which India earns its maximum foreign exchange is Iron industry. The value of iron metal traded from India added up to almost 186 billion rupees in the financial year 2020. Which is the second largest foreign exchange earner in India?
Just so, What is the second largest foreign exchange earner?
Response: At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector. What is the leading foreign exchange earner?
How often is India foreign exchange earnings data updated?
The reply will be: India Foreign Exchange Earnings data is updated monthly, averaging 54,400.000 INR mn from Jan 2001 to Feb 2023, with 261 observations. The data reached an all-time high of 226,310.000 INR mn in Dec 2019 and a record low of 710.000 INR mn in Apr 2020.
Keeping this in view, Is India the fifth largest foreign exchange holder in the world?
The answer is: With India’s forex reserves at $608.99 billion as on June 25, 2021 stood, India has emerged as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.
In this manner, Which industry earns maximum foreign exchange in India? Complete answer: Out of the given options, the industry in which India earns its maximum foreign exchange is Iron industry. The value of iron metal traded from India added up to almost 186 billion rupees in the financial year 2020. Which is the second largest foreign exchange earner in India?
Herein, What is the second largest foreign exchange earner? Response: At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector. What is the leading foreign exchange earner?
Keeping this in consideration, Why did India’s foreign exchange reserves hit a lifetime high?
The answer is: According to the Reserve Bank of India (RBI) data, the country’s foreign exchange (forex) reserves touched a lifetime high of USD 555.12 billion after it surged by USD 3.615 billion in the week ended 16th October 2020. The rise in total reserves was due to a sharp rise in Foreign Currency Assets (FCAs), a major component of the overall reserves.