Kuwait-Based Indians Send Over 2.1 Billion KD in Remittances

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KUWAIT CITY, Mar 6: Remittances by the Indian expats in Kuwait reached approximately 2.1 billion dinars (around 6.3 billion dollars) in 2023, constituting 4.8% of the total remittances from Indians abroad, totaling 125 billion dollars. New Delhi is pushing a proposal at the World Trade Organization to slash the costs of cross-border transfers and bolster the digital payment infrastructure’s interoperability and connectivity reports First Post.

Officials quoted by the newspaper stated that the proposal aims to save developing countries 30 to 40 billion dollars, with 78% of last year’s total remittance flows, amounting to $860 billion, directed towards low- and middle-income countries. They emphasized India’s goal of reducing remittance transaction costs to under 3% and eliminating remittance corridors with costs exceeding 5% by 2030, aligning with the World Trade Organization’s development agenda to diminish inequality within and between nations.

The proposal highlighted that fees on transfers below $200 to overseas workers could soar up to 10%, sometimes reaching 15 to 20%. The average global remittance cost was reported at 6.18%, double the United Nations’ sustainable development goal of 3%. The reduction in costs is anticipated to benefit numerous countries, with India projected to be the primary beneficiary, followed by Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion). India has the largest number of immigrants abroad, around 17.9 million, with remittances contributing 3.4% to its GDP.

The Indian proposal advocates for interoperability and connectivity in digital payments infrastructure, emphasizing that digital transfers cost significantly less than non-digital transactions, with an average global cost of 4.84%. Switching from cash to digital transfers could yield substantial cost reductions, with digital platforms offering faster, cheaper, and more transparent transactions. Moreover, linking national digital payment systems across borders could eliminate the necessity for foreign currency transfers.

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