Money Transfer to India – Where is the money going

A simple search for the term money transfer India on Google throws up a plethora of results on how you can send money to your retired father, ailing mother, to be married sister etc. Over the years, the phrase money transfer to India has almost become synonymous with sending money to the family. This theory is further reinforced by the kind of advertising the different service providers use. All communication is focused on transferring money to India for what is known in banking parlance as ‘family maintenance’.

While this obviously points to the fact that NRIs are concerned about their loved ones, is it really true that the estimated $55 billion that comes in annually is actually for family maintenance? Actually, the facts are quite to the contrary. While a large number of transactions for money transfer to India come for the upkeep of the family, in terms of value, most of the money goes towards investments.

It is a known fact that India is a very attractive investment destination for individuals & institutions. A booming real-estate market, significantly higher interest rates, high levels of confidence and so on make transferring money to India for investments a very lucrative proposition. In fact, world over, even foreign nationals see India as a very profitable investment destination. With interest rates at sub-zero levels & most western countries still reeling from the effects of the recession, it is no surprise that India would continue to rule the roost with regards to quantum of money remitted into the country.

And this has become even more evident with new age money transfer options available. With the advent of online transfers & the speed of information flow, NRIs can easily spot a good investment opportunity & send the money online to capitalize on it. Online money transfer service providers such as Remit2India have often seen that close to 50% of the transfers happen to the own NRE (Non-Resident External account) account of the sender. The NRE account gives the flexibility of repatriating the funds back to the country of origin, which works perfectly for NRIs if they ever want to take the money back to their country of residence.

So the way money is transferred to India & the end purpose it is used for is a very good indicator of the fact that India is shining !!

4 Responses to Money Transfer to India – Where is the money going

  1. eivai says:

    Hi, thank you for your post, it helped me a lot figuring out many things.

  2. Priyadharshini says:

    I have selected Remit2india to send money from Germany but I did not use till now I am bit scared to tranfer whether it is safe or not? and questions like this. So Please help me with suggestions.

    Bast Regards

    • remit2ind says:

      Dear Priya,

      There is nothing to get scared..If you read the entire article, it is just a viewpoint of the possibilities of the money being invested.
      and moreover, Remit2India is a safe and trusted choice since years.

      Hence you need not worry. So start sending money today 🙂

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