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The RBI's Report on Currency and Finance predicts a significant increase in remittances to India, expecting them to reach $160 billion by 2029, up from $115 billion in 2023. This growth is attributed to several factors that bolster India's position as the top receiver of global remittances. Key among these is the high global demand for Indian workers, which, coupled with ongoing skill upgrades, is anticipated to continuously boost inward remittances. Additionally, India's demographic advantage, with its working-age population expected to rise until 2048, contrasts with the declining working populations in major advanced economies, further reinforcing this trend. The report also notes the decreasing cost of sending remittances globally, facilitated by advancements in digitalization, which improves the efficiency of remittance services but is not cited as the primary sustaining factor. Thus, option C is the correct answer, as it directly contributes to the anticipated growth in remittances, aligning with the other positive indicators mentioned in the RCF.
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