UPSC Prelims Practice Questions — Remittances anchor the rupee, India’s external balances

Q1. According to the Economic Survey and RBI data, what was India's total inward remittance inflow in FY 2024-25?

  • A. USD 89.1 billion
  • B. USD 118.7 billion
  • C. USD 125.0 billion
  • D. USD 135.4 billion

Q2. With reference to the Reserve Bank of India's Sixth Round of India's Remittances Survey (covering 2023-24), consider the following countries: 1. United States 2. United Kingdom 3. Germany 4. Singapore Which of the above are correctly identified as among the top five source countries of inward remittances to India?

  1. United States
  2. United Kingdom
  3. Germany
  4. Singapore
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. In the classification of India's Balance of Payments, inward private remittances from non-resident Indians are recorded under which one of the following heads?

  • A. Current Account — Private Transfers (Invisibles)
  • B. Capital Account — Unilateral Transfers
  • C. Financial Account — Other Investments
  • D. Current Account — Services Receipts

Q4. With reference to the shift between the earlier and the latest (Sixth) Round of the RBI's India's Remittances Survey, consider the following statements: 1. The share of Gulf Cooperation Council (GCC) countries in India's inward remittances declined from 46.7% in 2016-17 to 37.9% in 2023-24. 2. The United States replaced the United Arab Emirates as the single largest source country of remittances to India. 3. Maharashtra overtook Kerala as the largest State-wise recipient of inward remittances. Which of the statements given above are correct?

  1. GCC share fell from 46.7% (2016-17) to 37.9% (2023-24).
  2. US replaced UAE as single largest source country.
  3. Maharashtra overtook Kerala as the top recipient State.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3