India International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

India International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

According to PayNXT360, the international inbound remittance market in India has increased at 15.7% during 2023 to reach US$146,021.2 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 9.6%, increasing from US$126,174.5 million in 2023 to reach US$210,834.6 million by 2028.

Remittance outflow market in India has increased at 15.3% during 2023 to reach US$13,119.3 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 9.4%, increasing from US$11,382.5 million in 2023 to reach US$18,806.7 million by 2028.

The remittance industry in India is a vital component of the economy, providing significant support through foreign exchange inflows. Recent trends indicate a strong shift towards digitalization, with increased adoption of mobile wallets and strategic partnerships enhancing service delivery. While challenges such as currency fluctuations exist, emerging fintech players drive market competition and innovation.

Investing in technology and infrastructure is crucial for sustaining growth. India's future remittance outlook is positive due to changing consumer needs and technological advancements.

Overview of Inward Remittances

• Significance of Inward Remittances: Inward remittances are a vital source of foreign exchange for India, significantly impacting the country's economic development by supporting families and contributing to economic growth.

• Impact on Economic Indicators: The money people send to India from other countries helps the country's economy and the value of its money. It's important for many families because it helps them pay for things like school, healthcare, and everyday expenses.

Identifying Trends and Developments in the Remittance Market

• Digitalization of Remittances: The COVID-19 pandemic has increased the number of people using the internet to send and receive money, making sending money faster and easier for many people.

• Example: The launch of digital platforms such as State Bank of India's ""SBI Remit"" and Paytm's ""Paytm Money Transfer"" illustrates this trend towards digitalization.

• Increased Adoption of Mobile Wallets: Mobile wallets have gained popularity for remittance transactions due to their convenience, speed, and lower costs.

• Example: Companies like Google Pay and PhonePe have integrated remittance services into their platforms, making it easier for users to send money.

• Growing Importance of Remittance Corridors: Specific corridors like the India-US corridor have become critical for facilitating remittance flows.

• Example: The agreement between India and the UAE to promote local currency transactions has strengthened the India-UAE corridor, enhancing formal remittance channels.

Analysing Currency Impact on Remittances

• Exchange Rate Dynamics: The value of the Indian rupee against major currencies significantly impacts remittance flows. A depreciation of the rupee can increase the value of remittances sent home, encouraging higher inflows.

• Local Currency Initiatives: Efforts to promote local currency transactions between India and other countries are expected to streamline remittance processes.

• Example: The agreement with the UAE facilitates transactions in local currencies, reducing costs and enhancing the security of remittance flows.
Exploring Strategies by Players Operating in Remittance

• Diversification of Services: Players in the remittance market are expanding their service offerings to include bill payments, and mobile recharges alongside traditional money transfers. This diversification increases customer loyalty.

• Partnerships and Collaborations: Strategic partnerships are being formed to enhance service reach and improve offerings.

• Investment in Technology: Companies invest in technologies like blockchain and artificial intelligence to improve transaction efficiency and reduce costs.

• Example: MoneyGram's investment in blockchain technology aims to streamline its remittance services.
Recognizing Emerging Players and Market Competition

• Rise of Fintech Solutions: New fintech companies are entering the market, increasing competition among traditional players. These companies offer innovative solutions that appeal to tech-savvy consumers.

• Example: Paytm's introduction of its ""Paytm Money Transfer"" service showcases how fintech is reshaping the remittance landscape.

• Competitive Landscape Dynamics: Established banks are compelled to innovate due to pressure from emerging players. This competition is driving improvements in service offerings across the industry.

• Example: Google Pay now lets people send money to other countries, which makes the competition tougher for other companies.
Investment Trends and Future Outlook for Remittances

• Investment in Digital Infrastructure: The remittance market will grow because of investments in digital systems like mobile wallets and payment services.

• Financial Inclusion Initiatives: Expanding banking services to underserved areas will enhance the access of a larger population to remittance services.

• Positive Long-Term Outlook: Despite current challenges, the long-term outlook for India's remittance sector remains optimistic due to ongoing digitalization efforts and government initiatives to improve efficiency in cross-border transactions.

This report from PayNXT360 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.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

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

Reasons to buy

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